If I trust Ripple China for USD and I trust Bitstamp for USD, then USD payments can ripple through me.
Unless you set a no-ripple flag, yes (also you get wanrd about that by the client). Why would you trust someone in China for USD though?!
It is just an example. It applies equally to trusting both Bitstamp and BTC-E for USD. The issue is ordinary users inadvertently being caught by cross border financial control legislation.
Do I need to be registered as a money transmitter under US law (FINCEN) or Chinese law (SAFE)?
s a user or a gateway? Please talk to a lawyer about this.
As a user. It has been repeatedly said that funds will ripple through users' accounts if they link to two gateways in the same currency. Accordingly is a user who trusts two gateways in the same currency a money transmitter? Ripple is building the system - I hope they have thought about this.
Is this on the list of prohibited activities for foreigners in China?
Have a look on that list... There are several Ripple gateways in China who operate already for quite some time (in CNY though). I have no idea how they deal with foreigners, if you speak chinese, please contact them.
The issue here is that Ripple could get getting ordinary users into a world of hurt without the users having any idea.
Do I need to maintain minimum registered capital under Chinese law?
Ask a lawyer, not in a forum thread about a page that re-listed Ripple.
Well I need to ask somewhere because I have spent hours reading Ripple information and I haven't found the answer yet. The point is that if I am issuing an IOU to Ripple China due to a transfer from Bitstamp rippling through me I don't know what that means for me under Chinese law.
How do I comply with KYC and AML if I have no idea who is rippling through me?
Ask a lawyer, not in a forum thread about a page that re-listed Ripple. I have no idea of your jurisdiction you're in, so there's that...
Technically speaking if you are dealing in US dollars then US law applies. If you don't believe me take it up with FINCEN. So that means I have to comply with US KYC and AML if I am a money transmitter. The fact that many don't is irrelevant - we are trying to avoid ordinary users getting into regulatory trouble.
Do I need to comply with Chinese foreign currency law as a third party payment processor? Does this mean I am prohibited from dealing in Bitcoin under the PBOC directive?
I am still not sure what you want to be? A simple user of Ripple, a gateway or a market maker... gateways might have issues in China if they allow Bitcoin deposits and withdrawals. If their users buy BTC with CNY deposited on Ripple however, there's nothing they can do about it.
Just a user. I would strongly suggest that the Chinese government can do something about it. Like putting the employees of Ripple China in prison for breaking Chinese law as a starter. Look at "Stern Hu" on Wikipedia for a story about what they do to foreign company employees who piss them off.
Am I carrying on a business in the US? Am I carrying on a business in China? What are the tax consequences in each jurisdiction?
Just by denominating something in USD does not mean you do business in the US, I am not so sure what you are trying to do though.
Yes but remember I am issuing IOUs for USD under the Ripple system as an ordinary user when a transaction ripples through me.
In the end I would anyways not recommend to trust multiple issuers for one currency on Ripple unless you really know what you are doing and want to accomplish. If you are happy with either Bitstamp or RippleChina's USD, why would you need both? Also if you are concerned or unsure about the default implicit 1:1 market making, just disable it.
Look I get that (now) it just seems like there is an entire world of regulatory issues here that have not been explored or closed out. It is obviously impractical for users to consult lawyers before trusting a gateway so these issues need to be sorted out and clearly explained.
