Topic: if BTC is regulated, can we get prosecuted for making an exchange site or node? (Read 1068 times)
December 16, 2016, 05:35:53 PM
I have never seen any law made that does not include "offences and penalties" which is a fundamental category of the law because they know that humans by default will run foul of the laws established so for the prosecution, I dont see why government will go through the process of enacting a law and not ready for implementation. So, it is yes if BTC is regulated, every individual who did not follow laid down rules and regulations will be prosecuted.
December 10, 2016, 10:31:30 PM
in my country similar to the existing problems, bitcoin would be tax free but the account has money that must be accounted,you may want to open in the state, hahaha, just kidding
December 10, 2016, 07:37:53 PM
The answer is simple: if the regulations forbid people from opening exchanges and you're doing it, you can be prosecuted. Same thing if they impose taxes on bitcoin and you decide to avoid them.
December 08, 2016, 10:48:05 AM
In my own opinion, I would say you could be prosecuted if what you intend doing falls under the purview of law created for such purpose. What I would suggest is that you take an extensive look at the law and also the relationships between laws as it relates to the type of business you intend operating in the sense that there are several laws guiding the activities of just one type of business and you could be innocent under one law and face the the full wrath of law on the other law or laws...
December 07, 2016, 09:12:02 AM
no,you cannot get prosecuted for running a node
with exchanges it is different-you have to check the legality of bitcoin operations in your country
or rather the country you plan to register your exchange at
if your exchange is under,lets say,Swedish jurisdiction it is perfectly legal
another thing to consider is compliances with your countries' tax laws
for US citizens to recieve money from even legally operating exchange could be illegal,need to check with lawyers
with exchanges it is different-you have to check the legality of bitcoin operations in your country
or rather the country you plan to register your exchange at
if your exchange is under,lets say,Swedish jurisdiction it is perfectly legal
another thing to consider is compliances with your countries' tax laws
for US citizens to recieve money from even legally operating exchange could be illegal,need to check with lawyers
December 06, 2016, 03:22:12 PM
what reason is there to prosecute someone running a node? all you're doing is hosting and processing information.
December 06, 2016, 05:27:43 AM
in general, only big business mixed in crypto-currencies will profit from regulating bitcoins, therefore they lobby (corrupt) politicians to open discussion about it in different parliaments. in switzerland you will need 300 000 Sfr to get license to be an exchange. it means you can be prosecuted if you make an exchange without to register a company and pay taxes and satisfy all money transmission rules. the bitcoin exchange will become a privilege of the wall-street managers. CH is the bankster country.
I think Austria refused to regulate bitcoins, Denmark doesn't accept it as money but they will tax those who make business from BTC. Austria is also not part of NATO and they are not part of 14 eyes of the NSA. denmark belongs to 6 or 9 eyes of the NSA. all of that is important if you want to protect your customers privacy when you make an exchange website (rent a server in some data center).
it is interesting to see this first document of the state of Illinois, I think it is made for comments, it is still not the law:
http://www.idfpr.com/news/PDFs/IDFPRRequestforCommentsDigitalCurrencyRegulatoryGuidance2016.pdf
shortly, if the real money is not involved, if you just exchange different crypto-coins, you don't need to follow/satisfy all transactions regulations. so, if I exclude fiat, I can rent a server in chicago. but they still didn't make it to be the law.
I think Austria refused to regulate bitcoins, Denmark doesn't accept it as money but they will tax those who make business from BTC. Austria is also not part of NATO and they are not part of 14 eyes of the NSA. denmark belongs to 6 or 9 eyes of the NSA. all of that is important if you want to protect your customers privacy when you make an exchange website (rent a server in some data center).
it is interesting to see this first document of the state of Illinois, I think it is made for comments, it is still not the law:
http://www.idfpr.com/news/PDFs/IDFPRRequestforCommentsDigitalCurrencyRegulatoryGuidance2016.pdf
shortly, if the real money is not involved, if you just exchange different crypto-coins, you don't need to follow/satisfy all transactions regulations. so, if I exclude fiat, I can rent a server in chicago. but they still didn't make it to be the law.
Quote
Transfer of digital currency by itself is not transmitting money. Because digital currency is not “money”, the receipt of it with the intent to transmit it to another entity is not “transmitting money.” This includes intermediaries who receive digital currency for transfer to a third party, and entities who, akin to depositories (commonly referred to as wallets), hold digital currency on behalf of customers.
Exchange of one digital currency for another digital currency is not money transmission. Regardless of how many parties are involved, there is no receipt of “money” and therefore “transmitting money” does not occur.
A digital currency business that conducts money transmission, as outlined above, must comply with all applicable licensing, reporting, net worth and other relevant requirements of the Transmitters of Money Act 205 ILCS 657/1 et seq
Exchange of one digital currency for another digital currency is not money transmission. Regardless of how many parties are involved, there is no receipt of “money” and therefore “transmitting money” does not occur.
A digital currency business that conducts money transmission, as outlined above, must comply with all applicable licensing, reporting, net worth and other relevant requirements of the Transmitters of Money Act 205 ILCS 657/1 et seq
December 05, 2016, 03:57:37 AM
Hi,
I am interested to start an bitcoin exchange website,
when bitcoin was not regulated, it was not a problem, but now, if I make bitcoin server, for example in the US (there are cheapest dedicated servers, I could get 64GB RAM for 30-40 USD per month), I could be charged for running a node without to have a company and without to follow transaction's rules that usually applies to banks.
so, if bitcoin is regulated and accepted as money or assets, can we get prosecuted for running a bitcoin/electrum server without to have a company and without to pay taxes? it means also without to record trades?
I would choose peatio but possibly I will have to look what country didn't regulate bitcoin. I am not interested to register a company and pay taxes. but making a server and transactions with the help of that server means I am included in bitcoin/assets/money transactions and in theory I could get prosecuted.
so, I have 2 questions:
1) can we get prosecuted for running a bitcoin node?
2) for running an exchange website?
I need to decide what country to rent a server to be sure I will not get problems. unfortunately, the cheapest servers are in the US and the FBI snitches all BTC servers.
if an exchange is not possible without bank account, I would exclude fiat. still I don't know if peatio could let users to use paypal or some other method (not bank account) to deposit money and buy bitcoins.
I am interested to start an bitcoin exchange website,
when bitcoin was not regulated, it was not a problem, but now, if I make bitcoin server, for example in the US (there are cheapest dedicated servers, I could get 64GB RAM for 30-40 USD per month), I could be charged for running a node without to have a company and without to follow transaction's rules that usually applies to banks.
so, if bitcoin is regulated and accepted as money or assets, can we get prosecuted for running a bitcoin/electrum server without to have a company and without to pay taxes? it means also without to record trades?
I would choose peatio but possibly I will have to look what country didn't regulate bitcoin. I am not interested to register a company and pay taxes. but making a server and transactions with the help of that server means I am included in bitcoin/assets/money transactions and in theory I could get prosecuted.
so, I have 2 questions:
1) can we get prosecuted for running a bitcoin node?
2) for running an exchange website?
I need to decide what country to rent a server to be sure I will not get problems. unfortunately, the cheapest servers are in the US and the FBI snitches all BTC servers.
if an exchange is not possible without bank account, I would exclude fiat. still I don't know if peatio could let users to use paypal or some other method (not bank account) to deposit money and buy bitcoins.
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