Topic: Wait...Does the March 18th finCen legislation make it illegal to trade bitcoins? - page 4. (Read 3950 times)
May 15, 2013, 03:03:59 PM
And this is why scrypt coins are way safer than SHA256 coins, since the govt goons could control dedicated Asic hashers, but never GPUs.
May 15, 2013, 03:03:26 PM
still. even if it only applies to miners in the united states, isn't that a big deal? Am I the only one that thinks so? I almost fell out of my seat when I read that.
May 15, 2013, 03:01:55 PM
ANYONE mwho sell Bitcoins or any other cryptocurrency for fiat money is now considered a 'Money Service Business' and has to register as such with finCen or be subject to the same sort of penalties as Mt.Gox, including fines and up to 5 years in prison.
For real... can anyone point out why I'm wrong on this one? I desperately want to be wrong.
For real... can anyone point out why I'm wrong on this one? I desperately want to be wrong.
Anyone = All people of all countries
FinCen etc blah blah = US of Amerika
May 15, 2013, 03:00:57 PM
Ok... that makes sense but still... every single miner having to register with finCen isn't much better.
they cant check that so who cares. 
May 15, 2013, 03:00:42 PM
USA. Lol.
May 15, 2013, 02:58:49 PM
Ok... that makes sense but still... every single miner having to register with finCen isn't much better.
May 15, 2013, 02:57:05 PM
I'm pretty sure this deals with miners that CREATE bitcoins, thus creating currency. If you buy bitcoin with USD, you are not "creating" it, but merely trading.
May 15, 2013, 02:51:30 PM
I'm seriously not trying to spread any FUD here but unless I'm reading it wrong... ANYONE who sell Bitcoins or any other cryptocurrency for fiat money is now considered a 'Money Service Business' and has to register as such with finCen or be subject to the same sort of penalties as Mt.Gox, including fines and up to 5 years in prison.
For real... can anyone point out why I'm wrong on this one? I desperately want to be wrong.
For real... can anyone point out why I'm wrong on this one? I desperately want to be wrong.
May 15, 2013, 02:44:16 PM
While researching the whole Mt.Gox warrant thing I started reading the actual legislation that they are alleging Mt.Gox has violated. http://www.fincen.gov/news_room/nr/pdf/20130318.pdf
Does that mean anyone trading Bitcoins for USD is now breaking the law if they are not registered as a Money Service Business?!
Quote
A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by their own computing or manufacturing effort.
A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, 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.
A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, 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.
Does that mean anyone trading Bitcoins for USD is now breaking the law if they are not registered as a Money Service Business?!
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