How are the "companies" here performing transactions? State/Fed MSB Reg?

[WiseOldOwl]

Just wondering if all these exchange companies are complying with regulations.
From my understanding you need to be registered as a MSB in every state you do business, and federally.
I doubt anyone here has pulled that off properly.
Any thoughts?

[Tekkna]

Interesting question, not sure, although I know that Mt.Gox is located in Japan, and they commonly use Bank Wire Transfers.

Not sure if the laws change around international commerce? Is there a way to register as a MSB for the internet? 

[WiseOldOwl]

According to the law if you transact with US customers, you are subject to regulation. It seems like MtGox does proper verification, but I don't believe they are registered as a MSB in every state they do business, (do they need to be?).
Either way I don't think any of the smaller exchanges (& exchange services) meet this criteria.
Let me assure you this is a law that they don't take lightly, and anyone doing bitcoin to usd (or vice versa) transactions that isn't fully registered (local, state, federal) and reporting/verifying customers, you could be in for a serious surprise.

[joesmoe2012]

MtGox said in an interview that they spent $25mil to become fully compliant in the USA.

While this may be way over stated, registration is required.

[WiseOldOwl]

Ok, it would not of cost that much I dont think, but I am assuming this is what they are talking about.
Additionally, if the cost is even 1/100th of this, then no one else on here is legit.

[Severian]

Just wondering if all these exchange companies are complying with regulations.

I certainly hope not. As more come online, I hope fewer do comply.

This overarching Hegelian State bullshit has to stop.

[shamoons]

An MSB doesn't need to register in every state, do they? Only an MTB does, I believe.

[WiseOldOwl]

Ive heard conflicting things.
Also what is a MTB. If T stands for transfer, then yeah its the same thing I believe.

[pheaonix]

if they come anywhere close to being hit by the feds, just put everything into btc and close shop

[shamoons]

Ive heard conflicting things.
Also what is a MTB. If T stands for transfer, then yeah its the same thing I believe.

Money transmitter