Do all bitcoin businesses have to register as MSBs as per FinCIN guidance?

CompNsci

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Quote from: pccs on August 10, 2013, 01:38:01 PM

What about advertising and selling for cash on localbitcoins?

It seems like the guidance is quite unclear here. It mentions individuals trading bitcoins for goods and services as being in the clear.

Also note that the definition of currency in many states excludes BTC (for example, CA).

pccs

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What about advertising and selling for cash on localbitcoins?

DeathAndTaxes

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Gerald Davis

They registered with FinCEN as a money transmitter. Still don't take the above as written in stone. Personally I believe FinCEN guidance is on rather weak ground. I guess it all depends on how far your legal counsel is willing to push things.

halfawake

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Quote from: DeathAndTaxes on August 07, 2013, 11:50:08 PM

Correct answer: obtain legal counsel.

Simplified forum answer: the guidance only refers to business (and yes an individual operating for profit is seen as a "business") which are in the BUSINESS of exchanging virtual currency for real currency (or one virtual currency for another one).

So it really depends on what you mean by "Bitcoin business".

Are you planning on opening any exchange? Then yes you must register.
Are you panning on operating as a direct broker like coinbase? Then yes you must register.
Are you planning on selling goods or services for Bitcoins? Then no you do not need to register.

A company which sells widgets for Bitcoins is in the business of selling widgets for Bitcoins and thus isn't an "exchanger" per the guidance.

Yes, I do plan on obtaining legal counsel before actually starting up the business I have in mind. Just pondering some of the legal implications before doing so. Thanks though, your conclusions were pretty much the same as mine.

Interestingly, Coinbase seems to disagree with you about the requirements. They are not a money transmitter by their own admission: https://coinbase.com/legal/user_agreement

adub

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Quote from: DeathAndTaxes on August 07, 2013, 11:50:08 PM

Correct answer: obtain legal counsel.

+1

Also, depends on the state. That is where you have to register as an MSB. (If your business is an actual money transmitter)

DeathAndTaxes

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Gerald Davis

Correct answer: obtain legal counsel.

Simplified forum answer: the guidance only refers to business (and yes an individual operating for profit is seen as a "business") which are in the BUSINESS of exchanging virtual currency for real currency (or one virtual currency for another one).

So it really depends on what you mean by "Bitcoin business".

Are you planning on opening any exchange? Then yes you must register.
Are you panning on operating as a direct broker like coinbase? Then yes you must register.
Are you planning on selling goods or services for Bitcoins? Then no you do not need to register.

A company which sells widgets for Bitcoins is in the business of selling widgets for Bitcoins and thus isn't an "exchanger" per the guidance.

halfawake

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I'm referring to businesses based in the United States, or those that accept US customers. This is what puzzles me about the FinCIN guidance, which to me, doesn't make much sense really. The way I understand it, all Bitcoin businesses that either reside in the United States, or interact with US customers, should register as MSBs. But my eyes kinda glaze over at legalese so I could be wrong about this interpretation.

I get that the exchanges have to register, but I'm more curious about other businesses that aren't exchanges, but by default have to exchange Bitcoins into dollars because for most people, most of your expenses are still dollar denominated these days.

Topic: Do all bitcoin businesses have to register as MSBs as per FinCIN guidance? (Read 1082 times)