Topic: [ANN] CannabisCoin [CANN][X11][Official] Unmoderated General Discussions. - page 49. (Read 492677 times)

How are the Cannabiscoin devs going to deal w/ the fact that marajuana related transactions are illegal under Federal law?

At present if the government so decided they could shut down Cannabiscoin and seize all assets immediately.  Just because this is on the block chain means nothing. If some from the AGs office in DC calls up Bittrex and Crypsy that's the end of trading essentially killing the coin. They know who the dev is and he'd find himself on charges for money laundering, selling marajuana to kids (it just takes one teenager to buy one gram of pot with Cannabiscoin from a friend to send the dev away for 20 years, etc.)

The banks were given vague clearance to go ahead as long as they meet strict reporting requirements:

FinCEN's legal guidance creates two new categories for banks to report transactions with marijuana businesses. All transactions will be labeled as "suspicious" and banks will have to file so-called Suspicious Activity Reports. Those transactions that banks believe are legal marijuana business can be reported to FinCEN as "marijuana limited" transactions. Those that banks believe may be illegal would be filed as "marijuana priority" transactions and would generate further scrutiny from regulators.

Frank Keating, president and CEO of the American Bankers Association, said:

"While we appreciate the efforts by the Department of Justice and FinCEN, guidance or regulation doesn't alter the underlying challenge for banks," he said. "As it stands, possession or distribution of marijuana violates federal law, and banks that provide support for those activities face the risk of prosecution and assorted sanctions."

Cannabiscoin is a financial instrument specifically designed to facilitate marajuana transactions and as such flies directly in the face of the law.  Banks can hide under the figleaf that they "believe" a transaction involves pot but a cannabiscoin coin transaction will always definitely be for the purchase of pot giving no leeway re enforcement.  Furthermore banks are required to provide detailed transaction history to regulators. Does cannabiscoin have the accountants and regulatory staff to provide this data? Here are the rules:

Also, how does Cannabiscoin handle the post 9/11 Know Your Customer rules that all financial structures must follow? Altcoins fly under the radar because the government could care less about people buying beef jerky, USB cables, etc. Cannabiscoin will actively promote the wide spread distribution and sale of narcotics and so will be under a microscope. Here are the requirements:

Collection and analysis of basic identity information (referred to in US regulations and practice a "Customer Identification Program" or CIP)
Name matching against lists of known parties (such as "politically exposed person" or PEP)
Determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft
Creation of an expectation of a customer's transactional behavior
Monitoring of a customer's transactions against their expected behaviour and recorded profile as well as that of the customer's peers

Of course since these are valid and uncomfortable people the hurry and buy a ticket for a train ride to the moon people will scream FUD in great big red letters. Let them. Real investors need answers ASAP.

How are the Cannabiscoin devs going to deal w/ the fact that marajuana related transactions are illegal under Federal law?

At present if the government so decided they could shut down Cannabiscoin and seize all assets immediately.  Just because this is on the block chain means nothing. If some from the AGs office in DC calls up Bittrex and Crypsy that's the end of trading essentially killing the coin. They know who the dev is and he'd find himself on charges for money laundering, selling marajuana to kids (it just takes one teenager to buy one gram of pot with Cannabiscoin from a friend to send the dev away for 20 years, etc.)

The banks were given vague clearance to go ahead as long as they meet strict reporting requirements:

FinCEN's legal guidance creates two new categories for banks to report transactions with marijuana businesses. All transactions will be labeled as "suspicious" and banks will have to file so-called Suspicious Activity Reports. Those transactions that banks believe are legal marijuana business can be reported to FinCEN as "marijuana limited" transactions. Those that banks believe may be illegal would be filed as "marijuana priority" transactions and would generate further scrutiny from regulators.

Frank Keating, president and CEO of the American Bankers Association, said:

"While we appreciate the efforts by the Department of Justice and FinCEN, guidance or regulation doesn't alter the underlying challenge for banks," he said. "As it stands, possession or distribution of marijuana violates federal law, and banks that provide support for those activities face the risk of prosecution and assorted sanctions."

Cannabiscoin is a financial instrument specifically designed to facilitate marajuana transactions and as such flies directly in the face of the law.  Banks can hide under the figleaf that they "believe" a transaction involves pot but a cannabiscoin coin transaction will always definitely be for the purchase of pot giving no leeway re enforcement.  Furthermore banks are required to provide detailed transaction history to regulators. Does cannabiscoin have the accountants and regulatory staff to provide this data? Here are the rules:

Also, how does Cannabiscoin handle the post 9/11 Know Your Customer rules that all financial structures must follow? Altcoins fly under the radar because the government could care less about people buying beef jerky, USB cables, etc. Cannabiscoin will actively promote the wide spread distribution and sale of narcotics and so will be under a microscope. Here are the requirements:

Collection and analysis of basic identity information (referred to in US regulations and practice a "Customer Identification Program" or CIP)
Name matching against lists of known parties (such as "politically exposed person" or PEP)
Determination of the customer's risk in terms of propensity to commit money laundering, terrorist finance, or identity theft
Creation of an expectation of a customer's transactional behavior
Monitoring of a customer's transactions against their expected behaviour and recorded profile as well as that of the customer's peers

Of course since these are valid and uncomfortable people the hurry and buy a ticket for a train ride to the moon people will scream FUD in great big red letters. Let them. Real investors need answers ASAP.