Topic: What does the Ripple news mean for Premined, IPO, ICO coins? Did they follow KYC (Read 2359 times)

There is nothing new here. FinCEN has issued guidance over two years ago that makes a clear distinction between a Centralized Virtual Currency and a De-Centralized Virtual Currency. http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html. Centralized Virtual Currencies mean that the Administrator and this can easily include developers etc. are considered MSBs and subject to MSB and AML/KNC regulations. Premined, IPO, ICO coins and likely many instamined and ninjamined coins are considered Centralized Virtual Currencies and subject to MSB and AML/KNC regulations.

For a coin to be considered a De-Centralized Virtual Currency both the following conditions have to be met. This is among many reasons why I have limited my Crypto-currency investments to Bitcoin (XBT), Monero (XMR) and Namecoin (NMC) and have stayed well away from premined, instamined, ninjamined, IPO, ICO, etc coins. We must keep in mind that the whole point of Bitcoin was to create a de-centralized form of money without a centralized controlling entity, and not to replace one centralized controlling entity with another for private profit.

Edit 1: If one wishes to invest in centralized forms of money one can buy shares in a bank.
 
Edit 2: It is not just FinCEN that premined, instamined, ninjamined, IPO, ICO, etc coins need to be concerned about. In the United States there is the SEC, and then there are hundreds of national and sub national regulatory bodies worldwide that could follow FinCEN's lead.  

Good.

I hope they all burn hard..

I have said since day 1 they are ALL pure scammy garbage .

I think Cryptsy was the first to pay for an MSB license that costs millions of dollars. I don't think any of the other US based alt exchanges have a license yet, although they might not need one if they do not have cash withdrawals.

However, any that have been hosting IPOs could be prosecuted for selling unregistered securities.

1.  $700k is a cheap ticket to being recognized as MSP.  If RIPPLE can pay the fine then they are de jure and bono fided MSP ... aka "bank".  But that means they can track whomever uses their crypto.  And the registered entity can go full throttle on that front as FIAT/CRYPTO gateway.  Hello Paypal/stellar!  

2.  Stick with the IPO idea, yes they are accepting BTC for shitcoin.  Nubulus at best.  Where is the value exchange if it is for Magic Internet money ... key point is on the cashout 4 fiat.

3.  FUCK RIPPLE ... not crypto is it ... something other like 70% owned and held by Ripple Labs LLC.  I welcome the corporate/crypto intermediates ... but they are irrelevant in the greater picture ... sorry Bill Gates don't need your VC Corp.

Alot of the exchanges are existing in the boundaries of the grey area. Already implementing kyc/aml precautions.

MSB is usually just $1000, and it doesnt matter about the value now its the value then.

And though I agree with you, and mostly WE (the rest of us) agree with you about the KYC/AML thing the US stamp collectors may not. Which is why I proposed this question. What if finCen doesnt see it that way and not only them but say the SEC.

Perhaps that is a necessary step that has to be taken before the revolution can truly begin.

That would give "nice" decline in price of Bitcoin and all alts in that matter.

That would give a good boost to getting decentralized exchanges working, adopted, and user friendly.

No impact on those coins. The issuers are not acting as money exchangers. As most of these coins has too little value by now, and difficult to catch the issuers (many of them disappeared and/or abandoned their coins since then, or they are just outside of reach) the FinCEN probably not going to waste time and resources on going after them.


I'd be very surprised if any of these coins took any kind of KYC/AML precautions . ...and that's actually a good thing as why the rest of the world should comply with the rules of some US stamp collectors club .

Thanks for including the link to the coindesk piece, it has what I think is a profoundly interesting additional detail:


Such delicate phrasing.

And a classic quote from the FinCEN Director, impressive ability to keep a straight face.

Reading that evokes a very strong mental image of Tommy Lee Jones in MIB, “No ma’am, the FBI does not have a sense of humor that we are aware of.”

Cheers

Graham

That wouldn't really work for the projects in mind (except maybe one of them) and then there's the question of remaining anonymous. Would also just prefer to do things above board and in my own name anyway.

Well, if they don't meet certain requirements we can have bigger problem so it can hurt cryptocurrencies after all.

You still can.  But be anonymous. 

Will that mean going back to trading thru the forum and doing escrows?  Noooo..  (

I'm not seeing it as a big problem for cryptocurrencies in general, but I think that exchanges might have some issues in near future.

Something like this has been expected for some time. I have a number of ideas I've wanted to explore by issuing a cryptocurrency and it's exactly this kind of thing that has really made me hesitate to do so.  Definitely in grey legal areas to say the least.

On the other hand, it could bring a refreshing wave of consolidation and focus. Get-rich-quick developers to be replaced with people who want to build the best possible systems?

that is an interesting concern

 lil diff yea