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Author Topic: Do I need need a Business money transmitter lisense?  (Read 1101 times)
Pcpoet
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December 13, 2013, 05:06:37 PM
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If you are bitcoin miner and trade at Bitstamp or Mtgox, do you need a business money transmitter license? I live in USA California.

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December 13, 2013, 05:12:39 PM
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If you are bitcoin miner and trade at Bitstamp or Mtgox, do you need a business money transmitter license? I live in USA California.
The exchange already takes care of MT/MSB requirements.  You'd only need your own if you sell directly to other people.
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December 13, 2013, 05:16:00 PM
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If you are bitcoin miner and trade at Bitstamp or Mtgox, do you need a business money transmitter license? I live in USA California.
The exchange already takes care of MT/MSB requirements.  You'd only need your own if you sell directly to other people.

Well actually as stupid as it is by the letter of the guidance there is no such exception.  Don't apply common sense to the law.  As written anyone who exchanges virtual currency for real currency is a money transmitter.  Yeah it makes no sense, it is stupid, and obviously can't be enforced (at least not in any uniform manner) but that is what the guidance says.  This is why FinCEN "guidance" is more like a hand grenade they threw into a crowd.  "Don't worry you will figure it out, and if you don't then you might be breaking the law is we later retroactively decide to enforce it".
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December 13, 2013, 08:02:02 PM
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http://www.fincen.gov/financial_institutions/msb/definitions/msb.html

Money Services Business - The term "money services business" includes any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the following capacities:

(1) Currency dealer or exchanger.
(2) Check casher.
(3) Issuer of traveler's checks, money orders or stored value.
(4) Seller or redeemer of traveler's checks, money orders or stored value.
(5) Money transmitter.
(6) U.S. Postal Service.

An activity threshold of greater than $1,000 per person per day in one or more transactions applies to the definitions of: currency dealer or exchanger; check casher; issuer of traveler's checks, money orders or stored value; and seller or redeemer of travelers' checks, money orders or stored value. The threshold applies separately to each activity -- if the threshold is not met for the specific activity, the person engaged in that activity is not an MSB on the basis of that activity.

No activity threshold applies to the definition of money transmitter. Thus, a person who engages as a business in the transfer of funds is an MSB as a money transmitter, regardless of the amount of money transmission activity.

Notwithstanding the previous discussion, the term "money services business" does not include:

A bank, as that term is defined in 31 CFR 1010.100(d) (formerly 31 CFR 103.11(c)), or
A person registered with, and regulated or examined by, the Securities and Exchange Commission or the Commodity Futures Trading Commission.
For the complete regulatory definition of "money services business", see 31 CFR 1010.100(ff) (formerly 31 CFR 103.11(uu)).

Note: Each money services business (MSB) is a financial institution. For the regulatory definition of "financial institution," see 31 CFR 1010.100(t) (formerly 31 CFR 103.11(n)).

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December 13, 2013, 10:09:30 PM
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From your quote ....

Quote
No activity threshold applies to the definition of money transmitter.
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December 15, 2013, 07:55:01 AM
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I've seen this question bounce around for sometime. If someone is small-time miner (e.g., altcoins) do they need a money transmitter license? Are people ignoring this for right now or do we have an official answer?  I'm inclined to email FinCen before the EOY to get some clarity on this question.
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December 15, 2013, 04:12:14 PM
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I've seen this question bounce around for sometime. If someone is small-time miner (e.g., altcoins) do they need a money transmitter license? Are people ignoring this for right now or do we have an official answer?  I'm inclined to email FinCen before the EOY to get some clarity on this question.

All hell would break lose if ANY Government tried to say you needed a "license" to run a machine that completely by itself without your input verifys transactions/keeps a ledger.

That is all its doing, you aren't transmitting other peoples money, you are just collectively verifying the existence of said money and where its going.

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