CoinBase - Not licensed

[flipstyle]

The empire will fall, most assuredly.  So you have all been warned.

Seen this play out the same way with online poker gambling in the U.S. and vague circumventing of existing laws.

Then the feds came through on 'black friday' without warning and slapped a big ol' 'this domain has been seized by the FBI' splash page, and customer funds were gone.


I hope people will learn from the mt. gox debacle and not keep money in coinbase accounts.  Just because states haven't taken action yet, does not mean they aren't currently pursuing the issue.



I'll be sure to re-quote this when it happens and slap the hell out of all you who left money in there thinking it couldn't happen.

[mayax]

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"?

What you do not want to see is that Coinbase is a Money Transmitter Business. CoinBase SAID THAT !

Please look to the FEDERAL REGULATOR - FINCEN's website :

Coinbase IS a money transmitter registered with FINCEN since 12/05/2014, meaning Coinbase knows that they fall under this law.

one can look up the Coinbase registration with FinCEN

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

That means Coinbase admitted they are MSB in ALL THE STATES. According to FINCEN you must be MSB registered with each state if you want to be a money transmitter in all the States.

Coinbase IS NOT. That means the FEDs can come any day to close the boutique which is operating illegally according to the FINCEN LAW

"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]

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"?

Indeed. As to how he can keep ignoring facts:

[mayax]

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"?

Indeed. As to how he can keep ignoring facts:

Please read the federal law and then tell me why you ignore it.

Coinbase claims that they are MSB on Fincen's website

Coinbase IS NOT MSB in California, New York and many other States.... so they operate...how? Illegally ! You`re right !


"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."  - it's the LAW

This LAW was applicable to many people who are already in JAIL for that. They were in the same biz as CoinBase. Nothing more, nothing less.

Does Coinbase have 3 balls, 3 brains? Why is Coinbase different than others?

[Klestin]

Please read the federal law and then tell me why you ignore it.

This is a federal policy (not a law, by the way - a policy), and has no bearing on whether a license is required in CA.  You are either truly confused, or are willfully ignoring this distinction. 

[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"?

What you do not want to see is that Coinbase is a Money Transmitter Business. CoinBase SAID THAT !

Please look to the FEDERAL REGULATOR - FINCEN's website :

Coinbase IS a money transmitter registered with FINCEN since 12/05/2014, meaning Coinbase knows that they fall under this law.

one can look up the Coinbase registration with FinCEN

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

That means Coinbase admitted they are MSB in ALL THE STATES. According to FINCEN you must be MSB registered with each state if you want to be a money transmitter in all the States.

Coinbase IS NOT. That means the FEDs can come any day to close the boutique which is operating illegally according to the FINCEN LAW

"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."

FinCEN does not regulate state-level licensing. For states that don't require a license Coinbase is still required to register with FinCEN, which they did. For states that require a license Coinbase has either obtained said license or is not including that state in it's list of supported states. What do you suppose Coinbase should do in California? How does it obtain a license there if "The California Department of Business Oversight has not decided whether to regulate virtual currency transactions"?

[Gleb Gamow]

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.

[waterpile]

LoL! so coinbase was lying about being a legit company? Oh god then anytime they can be closed and arrested for possessing illegal currency. 

[Bit_Happy]

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"?

What you do not want to see is that Coinbase is a Money Transmitter Business. CoinBase SAID THAT !

Please look to the FEDERAL REGULATOR - FINCEN's website :

Coinbase IS a money transmitter registered with FINCEN since 12/05/2014, meaning Coinbase knows that they fall under this law.

one can look up the Coinbase registration with FinCEN

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

That means Coinbase admitted they are MSB in ALL THE STATES. According to FINCEN you must be MSB registered with each state if you want to be a money transmitter in all the States.

Coinbase IS NOT. That means the FEDs can come any day to close the boutique which is operating illegally according to the FINCEN LAW

"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."

FinCEN does not regulate state-level licensing. For states that don't require a license Coinbase is still required to register with FinCEN, which they did. For states that require a license Coinbase has either obtained said license or is not including that state in it's list of supported states. What do you suppose Coinbase should do in California? How does it obtain a license there if "The California Department of Business Oversight has not decided whether to regulate virtual currency transactions"?

Good summary:
Coiinbase is looking legit and the negative trolls are running out of ammo.

[cozk]

[hongw]

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.

The thing is that coinbase does not claim to have a license in all the states that the USD wallet is available (nor that their exchange can be used). They only claim that the states that allow the USD wallet they either have a license in or they believe they do not need a license. In the case of CA (and NY) they do not believe they need a license

[mayax]

you ignore the facts.

Coinbase is registered with FINCEN as being MSB for ALL THE USA

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

What does mean? It means they admit the fact that they are MSB in all the US. Are they licensed in all the US? No, they are not.

Let's take the New York state. Make a search on internet: "bitcoin unlicensed money transmitter". See what you can find and then you come to comment

Before searching, I will tell you what you will see; something like : 2 year prison term for bitcoin unlicensed money transmitter

Now, see Florida : "charged with felony violations of Florida’s law against unlicensed money transmitters — which prohibits “currency or payment instruments
 

So, Coinbase is operating illegally New York and Florida. These are only 2 cases. But they operate illegally in many other states

The law MUST be for everybody.

[Bit_Happy]

you ignore the facts.

Coinbase is registered in FINCEN as being MSB for ALL THE USA

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

What does mean? It means they admit the fact that they are MSB in all the US. Are they licensed in all the US? No, they are not.

Let's take the New York state. Make a search on internet: "bitcoin unlicensed money transmitter". See what you can find and then you come to comment

Before searching, I will tell you what you will see; something like : 2 year prison term for bitcoin unlicensed money transmitter

Now, see Florida : "charged with felony violations of Florida’s law against unlicensed money transmitters — which prohibits “currency or payment instruments
 

So, Coinbase is operating illegally New York and Florida. These are only 2 cases. But they operate illegally in many other states

The law MUST be for everybody.

"The law MUST be for everybody."
1) Yes, the Federal law is for everybody and Coinbase is registered with FINCEN.
2) State laws vary, and in some states CB does not need anything except the Federal registration.

[mayax]

you ignore the facts.

Coinbase is registered in FINCEN as being MSB for ALL THE USA

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

What does mean? It means they admit the fact that they are MSB in all the US. Are they licensed in all the US? No, they are not.

Let's take the New York state. Make a search on internet: "bitcoin unlicensed money transmitter". See what you can find and then you come to comment

Before searching, I will tell you what you will see; something like : 2 year prison term for bitcoin unlicensed money transmitter

Now, see Florida : "charged with felony violations of Florida’s law against unlicensed money transmitters — which prohibits “currency or payment instruments
 

So, Coinbase is operating illegally New York and Florida. These are only 2 cases. But they operate illegally in many other states

The law MUST be for everybody.

"The law MUST be for everybody."
1) Yes, the Federal law is for everybody and Coinbase is registered with FINCEN.
2) State laws vary, and in some states CB does not need anything except the Federal registration.

get to the point. Florida and New York. Are they licensed?

[Bit_Happy]

you ignore the facts.

Coinbase is registered in FINCEN as being MSB for ALL THE USA

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

What does mean? It means they admit the fact that they are MSB in all the US. Are they licensed in all the US? No, they are not.

Let's take the New York state. Make a search on internet: "bitcoin unlicensed money transmitter". See what you can find and then you come to comment

Before searching, I will tell you what you will see; something like : 2 year prison term for bitcoin unlicensed money transmitter

Now, see Florida : "charged with felony violations of Florida’s law against unlicensed money transmitters — which prohibits “currency or payment instruments
 

So, Coinbase is operating illegally New York and Florida. These are only 2 cases. But they operate illegally in many other states

The law MUST be for everybody.

"The law MUST be for everybody."
1) Yes, the Federal law is for everybody and Coinbase is registered with FINCEN.
2) State laws vary, and in some states CB does not need anything except the Federal registration.

get to the point. Florida and New York. Are they licensed?

The point was extremely clear:
In every state (including FL and NY) they are licensed/registered with FINCEN to legally operate a MSB.
The federal requirement is met in all 50 states.

[gargantuar]

Mayax is an angry little imbecile that is so proud to yell "fire" in an otherwise safe theater.  It (Mayax) even goes so far as to put smileys on the end of offensive sentences.  

What is wrong with you, Mayax?  Not sure.  However, I do think you and your green-eyed lust for whatever it is that keeps you awake at night is one of the things what is wrong with this world.

You post spastically about regulations and the laws that are for all of us.  Why?  Don't you think you might better serve the world (and yourself) by addressing the idiocy that NY and CA have ruling their states that prevents free enterprise?  Probably not.  You are either a socialist, Obama's other gay lover, or a government shill.

Remove my post, Mayax.  I dare you, turd.

[tss]

this is all new territory for the us.  when problems arise i am sure they will be handled swiftly and precedents will be set for the future.  with bitcoin now 6 years strong, i doubt the united states will make any attempts at making the transfer of btc to fiat "illegal"

[funtotry]

I never trusted coinbase anyways, never trust people who deceive you in any way, even if its not a crime, you never know what else they are deceiving you for.

[mayax]

you ignore the facts.

Coinbase is registered in FINCEN as being MSB for ALL THE USA

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

What does mean? It means they admit the fact that they are MSB in all the US. Are they licensed in all the US? No, they are not.

Let's take the New York state. Make a search on internet: "bitcoin unlicensed money transmitter". See what you can find and then you come to comment

Before searching, I will tell you what you will see; something like : 2 year prison term for bitcoin unlicensed money transmitter

Now, see Florida : "charged with felony violations of Florida’s law against unlicensed money transmitters — which prohibits “currency or payment instruments
 

So, Coinbase is operating illegally New York and Florida. These are only 2 cases. But they operate illegally in many other states

The law MUST be for everybody.

"The law MUST be for everybody."
1) Yes, the Federal law is for everybody and Coinbase is registered with FINCEN.
2) State laws vary, and in some states CB does not need anything except the Federal registration.

get to the point. Florida and New York. Are they licensed?

The point was extremely clear:
In every state (including FL and NY) they are licensed/registered with FINCEN to legally operate a MSB.
The federal requirement is met in all 50 states.

You make a confusion.

Being registered with FINCEN, it does not mean your are MSB. Anybody can "register" with them

Please read here(footer):

http://www.fincen.gov/financial_institutions/msb/msbstateselector.html

The inclusion of a business on the MSB Registrant Search Web page is not a recommendation, certification of legitimacy, or endorsement of the business by any government agency.

The Bank Secrecy Act (BSA), which requires money services businesses to register with the U.S. government using FinCEN, clearly states that the FinCEN registration requirement "shall not be construed as superseding any requirement of State law relating to money transmitting businesses operating in such State".

This means that each MSB must investigate and adhere to the licensing requirements of each state that the MSB operates in. Failure to comply with state licensing  requirements may lead to violation of both state law and federal law.

 for example,  Coinbase is a money services businesses in Florida BUT they are not licensed so they are illegal.  I hope it is clear now.

I am not saying that they must go to jail. I am just saying that other people are already in jail for the exactly same business as Coinbase is doing now.

[Jordan23]

OP is really slow. He wants Coinbase to have a State license in states that require no license at this time. They are Federally legit.