CoinBase - Not licensed

[Blazr]

My thoughts: they are probably a operating in a grey area, but more white than black.

[mayax]

Coinbase is operating illegally in California, New York and others.

The law MUST be for everybody. How many people were or are in "custody" for unlicensed money transmitter? MANY !

The fact that CA and NY have not decided yet if and how to regulate "virtual currencies" doesn't necessarily mean that Coinbase operates illegally. If you read past the headlines in the ZDNet and NY Times articles you would see that. Sloppy PR and/or media reporting perhaps (to imply licensing where it's actually a "gray area"), but not the crime you're making it to be.

Wrong : in 2013, Department of Homeland Security had seized $5 million from Mt. Gox’s. Mt. Gox failed to register in the U.S. as a money transmitting company.

I think Mt Gox operated with Bitcoin, right?

[redsn0w]

Coinbase is operating illegally in California, New York and others.

The law MUST be for everybody. How many people were or are in "custody" for unlicensed money transmitter? MANY !

The fact that CA and NY have not decided yet if and how to regulate "virtual currencies" doesn't necessarily mean that Coinbase operates illegally. If you read past the headlines in the ZDNet and NY Times articles you would see that. Sloppy PR and/or media reporting perhaps (to imply licensing where it's actually a "gray area"), but not the crime you're making it to be.

Wrong : in 2013, Department of Homeland Security had seized $5 million from Mt. Gox’s. Mt. Gox failed to register in the U.S. as a money transmitting company.

I think Mt Gox operated with Bitcoin, right?

Mt Gox was  different from coinbase... However report them to the authority come on !

[Blazr]

Coinbase is operating illegally in California, New York and others.

The law MUST be for everybody. How many people were or are in "custody" for unlicensed money transmitter? MANY !

The fact that CA and NY have not decided yet if and how to regulate "virtual currencies" doesn't necessarily mean that Coinbase operates illegally. If you read past the headlines in the ZDNet and NY Times articles you would see that. Sloppy PR and/or media reporting perhaps (to imply licensing where it's actually a "gray area"), but not the crime you're making it to be.

Wrong : in 2013, Department of Homeland Security had seized $5 million from Mt. Gox’s. Mt. Gox failed to register in the U.S. as a money transmitting company.

I think Mt Gox operated with Bitcoin, right?

Mt Gox were operating in other states that required a money transmission license without one. CA and NY haven't decided what people need yet, hence coinbase operating in these states is grey-area, but not strictly illegal. It is obviously a stretch to claim they are regulated in these states however.

[suchmoon]

Wrong : in 2013, Department of Homeland Security had seized $5 million from Mt. Gox’s. Mt. Gox failed to register in the U.S. as a money transmitting company.

I think Mt Gox operated with Bitcoin, right?

What does it have to do with Gox? Which part of the Coinbase webpage and the articles that you yourself linked to make you think that Coinbase is operating illegally? Please quote and explain your reasoning.

[Bit_Happy]

Ca and NY stated that the new Coinbase exchange is not yet licensed.
They still could be a fully legal, licensed money transmitter for their already established services.

[Come-from-Beyond]

Please make a search on yahoo or google or msn :   unlicensed money transmitter bitcoin

You will see how many people are "suffering" because of that. The law was applied in their cases. Yes, people like you.... with families: these  people have their lives...ruined. they ran the same biz as Coinbase
, called  unlicensed money transmitter.

Why is Coinbase different?

Because...

Corporation: An ingenious device for obtaining profit without individual responsibility.

                                                                       Ambrose Bierce

[RocketSingh]

Ca and NY stated that the new Coinbase exchange is not yet licensed.
They still could be a fully legal, licensed money transmitter for their already established services.

LocalBitcoins, BitQuick.co etc operate across the globe. Do they have any license ?

[redsn0w]

Ca and NY stated that the new Coinbase exchange is not yet licensed.
They still could be a fully legal, licensed money transmitter for their already established services.

LocalBitcoins, BitQuick.co etc operate across the globe. Do they have any license ?

He will not understand you , However coinbase for me is legit _ it is not regulated but this is obviously  "bitcoin" is not regulated.

[Voidcrafter]

I do not think a shady business that is in danger of facing charges for illegally transmitting money would get 100s of millions of $ in funding ...

[Klestin]

Please link to where CoinBase said they are licensed and regulated in California. With regards to California, they've only said that the state has yet to publish regulations.  They're licensed in 14 states which currently have published regulations, and are operating in several more where regulations are not yet finalized.  

Clearly this is a terrible hidden secret that they hoped you'd never find, which is why they've posted a list of their licenses on their website: https://www.coinbase.com/legal/licenses

[Nagle]

Please link to where CoinBase said they are licensed and regulated in California.

Right here.

"We’re happy to announce Coinbase Exchange, the first regulated bitcoin exchange based in the U.S. With this launch our goal is to bring increased stability to the bitcoin ecosystem.

Coinbase Exchange provides a reliable and secure platform for bitcoin trading that is backed by investors such as the New York Stock Exchange. If you are a Coinbase user in one of the 24 supported U.S. states or territories you can begin trading immediately on Coinbase Exchange."

The list of 24 states includes California.

[Nagle]

I do not think a shady business that is in danger of facing charges for illegally transmitting money would get 100s of millions of $ in funding ...

Enron. MF Global. ...

[galbros]

They have been very clear that they can only operate in selected states and as you point out California is not one of them.

Here is the press account: Press Account

Here is the coinbase post claiming licensed in CA, complete with map.   Licensed in CA

It looks like they are really only licensed in 14 states.  While this is a little disconcerting, in my mind it is much less bad than them reversing trades like they are reported to have done under their brokerage model from time to time.

[mayax]

Ca and NY stated that the new Coinbase exchange is not yet licensed.
They still could be a fully legal, licensed money transmitter for their already established services.

LocalBitcoins, BitQuick.co etc operate across the globe. Do they have any license ?

He will not understand you , However coinbase for me is legit _ it is not regulated but this is obviously  "bitcoin" is not regulated.

Bitcoin is "regulated". You must report to IRS your revenue from BTC trading(if you have one). Anyway, Coinbase (if you used it) reports to to FINCEN (including IRS).

Remember how many people who deal with BTC are in jail for the same business as Coinbase is making. People from New York, California, Texas and so on... make a search.

Keep in mind the FEDERAL LAW :

"a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."

"Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both."

[Klestin]

Please link to where CoinBase said they are licensed and regulated in California.

Right here.

Um... that page says they're licensed, and it says they are operating in (among other states) California. It does not, however, claim that they're licensed in California.  In fact, one link deep on the very page you posted:

"The USD wallet is only available to Coinbase customers located in US states where Coinbase is either licensed to engage in money transmission, where it has determined that no such license is currently required, or where licenses are not yet being issued with respect to Coinbase's business."

This seems pretty clear.

Once again, please post where they said they're licensed in California.

[mayax]

Coinbase is operating illegally in California, New York and others.

The law MUST be for everybody. How many people were or are in "custody" for unlicensed money transmitter? MANY !

The fact that CA and NY have not decided yet if and how to regulate "virtual currencies" doesn't necessarily mean that Coinbase operates illegally. If you read past the headlines in the ZDNet and NY Times articles you would see that. Sloppy PR and/or media reporting perhaps (to imply licensing where it's actually a "gray area"), but not the crime you're making it to be.

Wrong : in 2013, Department of Homeland Security had seized $5 million from Mt. Gox’s. Mt. Gox failed to register in the U.S. as a money transmitting company.

I think Mt Gox operated with Bitcoin, right?

Mt Gox was  different from coinbase... However report them to the authority come on !

Mt Gox WAS NOT different than Coinbase. Mt. Gox failed to register in the U.S. as a money transmitting company. They were registered in US and they accepted payments.It's simple.

There are many other examples. I gave you MTGox beacuse it's more common.

[Nagle]

For what it's worth, their Iowa license has a location for Coinbase:

1 Front Street
Suite 2600
San Francisco CA 94111

The Market St. address they give on their web site is a mail drop. The Bluxome St. they gave on their SEC filing to issue stock is someone's apartment. This is at least an office in an office building.

[mayax]

Please link to where CoinBase said they are licensed and regulated in California.

Right here.

Um... that page says they're licensed, and it says they are operating in (among other states) California. It does not, however, claim that they're licensed in California.  In fact, one link deep on the very page you posted:

"The USD wallet is only available to Coinbase customers located in US states where Coinbase is either licensed to engage in money transmission, where it has determined that no such license is currently required, or where licenses are not yet being issued with respect to Coinbase's business."

This seems pretty clear.

Once again, please post where they said they're licensed in California.

IF they are not licensed, they are outlaw. California requires a such license, New York the same. There is no grey area at all.

read that with an open mind :  http://www.corporatefinancialweeklydigest.com/2014/08/articles/litigation/judge-rakoff-rules-that-bitcoin-is-money-in-new-york-federal-court      

[suchmoon]

IF they are not licensed, they are outlaw. California requires a such license, New York the same. There is no grey area at all.

Why do you keep ignoring this?

The California Department of Business Oversight has not decided whether to regulate virtual currency transactions

How can you then claim that "California requires a such license"?