A message from our CEO about the future of Stack Overflow and Stack Exchange. Read now.

Hot answers tagged

11

Because all transactions in both Litecoin and Bitcoin are stored in the block chain, you run into the same issue you do here if you were just to try and withdraw USD for bitcoins, i.e., does your intermediary store logs of the off chain transactions? When you buy LTC using BTC on Kraken, if Kraken decides to log this transaction then there is now a link ...


8

I'm pretty sure that all crypto payment processors that deal with fiat <-> cryptocurrency exchanges are doing AML/KYC routines including chain analysis. That's not only true for BitPay and Coinbase but Circle et al. too. As soon as you're trying to move value between crypto and fiat you're going to have to deal with different levels of privacy invasions ...


5

In the US, these are called "Know your Customer", and "Anti Money Laundering" (KYC/AML) laws and is enforced by FINCEN (financial crimes enforcement network) in the US for any businesses that qualifies as a "Money Service Business" or "Money Transmitter". This guidance published on March 2013, http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001....


4

An apostille is only required for level 2. Their original announcement of the change was confusing, but they have since clarified it on the forum - https://bitcointalk.org/index.php?topic=60074.msg716245#msg716245. Edit: You also need a bank account linked to your Dwolla account that has been verified over 30 days.


4

BitInstant seems like a nice Tor-friendly option (they even accept deposits in cash): https://www.bitinstant.com/


3

While I think the project as some merit, I am concerned about any legal liability I could hold. That's a good thing to think about. The company that wants to hire me has declared to me that the ICO would be available to US residents and that I shouldn't worry about kyc or aml. Do they mean that you shouldn't worry because someone else in the company is ...


3

There is not. You will not find a definitive list of allowable documents, endorsed by a government, regulatory body, trade group etc. You may find lists of generally accepted documents, however there is no guarantee that their acceptance is either uniform or universal. Documents typically considered acceptable for the purposes of establishing residency at ...


3

In OTC, it is totally up to the mutual agreement of the two parties, if you are a financial business that has to comply with AML laws, you will have have to ask for these info, but that may mean some counterparties will shun from you.


2

In the EU AML regulations do not apply to currencies, they apply to financially registered entities and a couple of other ones. The entities required to ensure AML-compliance are : Banks, Payment Service Providers, Latin notaries (think about laundering money through real-estate transactions for example) Licensed currency exchangers, etc. Legally ...


2

Your question is almost meaningless unless you specify which country's AML laws you are interested in. Some potentially useful pointers: US Federal Regulation 31, especially Part 1022 about Suspicious Activity Reports German Gesetz zum Aufspüren von Gewinnen aus schweren Straftaten (Geldwäschegesetz), which translates roughly into Law towards Detection of ...


2

If your (UK) business is in an area where you have specific regulations to follow for anti-money laundering, and you do, you will already know the answer. (If it is not in the UK, you may have to find out if dealing with UK-registered Bitstamp means you'll have to start complying with UK law and its requirements like KYC: Know Your Customer.) Otherwise, the ...


2

Yes I would say that this is quite possible but because litecoin is traceable like Bitcoin the entire laundering process you described reposes on the exchanges platform confidentiality. There is actually a coin called Zerocoin that is in preparation and that is designed to be completely untraceable. I hadn't a deep look into their White paper so I can not ...


1

In the US, nobody is likely to care if you assume a zero basis and pay capital gains tax on the full value of the bitcoins. If anyone asks, just explain that you acquired them back when they were nearly worthless. There are a lot of people in that same situation.


1

For absolute clarity, you should consult the appropriate lawyer / tax professional in your jurisdiction. However, in general, accepting bitcoin for payment should be no different than accepting any other form of payment. Think of it like accepting a foreign currency, and apply the appropriate accounting practices. There are even services out there which ...


1

KYC and AML are required if the entity is moving money from A to B. Those entities are referred to as MSB (Money Services Business). However crypto exchanges are are not truly MSB's but they still do KYC and AML. See this insightful article: https://hackernoon.com/bitcoin-is-not-money-if-you-seek-compliance-you-are-asking-for-trouble-cbe9107e5298?source=...


1

From a gox employee: What does the process involve? First, we ask you to provide one piece of government issued photographic identification, which is usually either: A driver's license, A passport, or; A military identification card (surprisingly, we have a large number of customers in the armed forces of various countries.) We then ask you provide some ...


1

Jumio is used by a few companies, including SnapSwap, CoinMKT, etc. Their notable products include NetVerify and BISON. miiCard is used by Bylls and Bittylicious. Sphonic is used by Bitnet.


1

AML is only applied to customer relationships. In this case that would be people that have an account with a gateway and are using said account to either deposit or withdraw massive amounts of money/crypto from the gateway. It cannot apply to rippled balances, as you don't need to provide any information to another entity in Ripple in order to extend a ...


1

As the document predates Bitcoin, it does not specifically address the Bitcoin network. While the document may apply according to the phrasing, I am not sure whether the Bitcoin network as such is a legal entity as it does not have any formal structure. I would assume that only participants in the Bitcoin network could be addressed by law, i.e. "a company", "...


1

There is already one alternative crypto-currency that is trying to solve the problem of staying anonymous while performing transactions: http://stablecoin.net


1

According to Ripple the url https://ripple.com/wiki/Gateway_Integration_Manual for the Gateway Integration Manual is "DEPRECATED". Ripple says "This page has been replaced with the new Gateway Guide on ripple.com. Please refer to that document instead." Here is their newer doc: https://ripple.com/build/gateway-guide/ Ripple does not prohibit those who are ...


1

In the U.S., FinCEN just determined that decentralized virtual currencies are not like money orders. Money orders are the mechanism enabling the moving of currency or value that serves as currency from one person or location to another person or different location. Using bitcoins for making a purchase from a merchant is not the same as moving currency. ...


1

While bitcoin may seem to be useful as an offshore bank account, it likely won't be subject to the FBAR reporting requirements. Now if you have fiat (e.g., USD) funds at an exchange that is not in your own country (e.g., Mt. Gox) and those funds exceed $10,000 worth then possibly that could be something where an FBAR filing might be required. So having $...


1

Cryptsy is TOR friendly- allowing users to both access the site and maintain accounts via TOR. This is as of 04-08-2014. Conditions may change soon due to "us" accepting USD.


Only top voted, non community-wiki answers of a minimum length are eligible