Topic: Is Selling Bitcoins on LocalBitcoins.com Legal? - page 5. (Read 21382 times)
As far as the US goes, as long as you mine your coins you are selling. You are okay and will not have FinCen coming after you. If you involve third parties or start buying and selling then you may have issues with being an MSB.
I don't think the amount you're transacting matters, any time you're selling Bitcoin for profit in the US counts as Fincen's definition of an exchanger.
Registration as a money transmitter doesn't cost anything. You can do it here - http://www.fincen.gov/financial_institutions/msb/msb.registration.html
I guess it's the AML stuff that's the major grind.
Registration as a money transmitter doesn't cost anything. You can do it here - http://www.fincen.gov/financial_institutions/msb/msb.registration.html
I guess it's the AML stuff that's the major grind.
That's a great answer. We also gotta keep in mind that the law is way behind on this. There are almost no laws in the first world countries, definitely none in third world countries (or "developing nations"). In most of the US, you're going to have to be careful to adapt this new digital money to the laws that already exist surrounding money, debit and credit.
I highly suggest that you find a lawyer, or a law student about to graduate to talk to about it.
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
There is no clear-cut answer to this question. But based on all the information available, you should be okay since you are acting as a merchant/agent for PayPal (which is licensed in every state) and since you don't hold customer funds on account like an exchange.
The concern ...and a very valid concern, would be the risk and exposure to charge-back fraud.
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards
Would selling btc for paypal mycash falls under the MSB?
Because these are able to be purchased without no id and without paypal involved.
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
There is no clear-cut answer to this question. But based on all the information available, you should be okay since you are acting as a merchant/agent for PayPal (which is licensed in every state) and since you don't hold customer funds on account like an exchange.
The concern ...and a very valid concern, would be the risk and exposure to charge-back fraud.
there is still no official mention of rules on the legality
of the law of bitcoin
of the law of bitcoin
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
It depends what country you are in and how good your lawyer is. In the United States, technically, that fits the description of operating as a money transmitter. There is no minimum volume for these operations. There are local and federal laws regarding it. However, many times when charges have been pressed, the defendants have won their cases. They don't always get the money that was seized though, and they spend a lot more defending themselves.
Depends on if you live in New York or something like that.
I believe that they have laws on cryptocurrency.
I believe that they have laws on cryptocurrency.
The money transmitting thing is nation wide. And any jurisdiction anywhere in the US can nail you if you haven't sufficiently covered your arse.
Depends on if you live in New York or something like that.
I believe that they have laws on cryptocurrency.
I believe that they have laws on cryptocurrency.
I don't think the amount you're transacting matters, any time you're selling Bitcoin for profit in the US counts as Fincen's definition of an exchanger.
Registration as a money transmitter doesn't cost anything. You can do it here - http://www.fincen.gov/financial_institutions/msb/msb.registration.html
I guess it's the AML stuff that's the major grind.
Registration as a money transmitter doesn't cost anything. You can do it here - http://www.fincen.gov/financial_institutions/msb/msb.registration.html
I guess it's the AML stuff that's the major grind.
If someone were to sell bitcoins on localbitcoins.com in exchange for paypal my cash cards, which were then deposited into paypal. Is that legal as long as any taxable gains received in the transaction are paid? If the amount is under $500 per day and $4000 per month would there be any requirement to know the customer or comply with anti-money laundering laws?
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