After reading this thread about how using bitcoin is legal/illegalhttp://bitcointalk.org/index.php?topic=227.0
I started wondering about some of the service providers coming up around bitcoin and who could be affected by money transmitter licensing rules. (Individuals using bitcoin don't seem to be affected by this, so I'm thinking of service providers here - specifically those who may want to incorporate or reside in the U.S.)
Apparently Paypal had to become licensed as a money transmitter. This page has some more info:http://www.goodwinprocter.com/~/media/Files/Publications/Attorney%20Articles/2003/Risky_Business_State_Regulation_of_Money_Transmitters.ashx
My question is if you became licensed as a money transmitter in a bunch of states, what are the implications of this?
- Do you pay a transaction fee to the state now?
- Are you required to report identity of the sender/receiver to the state?
This sort of thing could become more important as BitCoin attempts to enter the mainstream, or be offered as a payment alternative at retail shops, etc.