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Your guess is as good as anybody else's. FinCEN's guidelines read: The term "money transmission services" means "the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means." That's as ...


4

This all depends on what asset the IOU represents and by extension what it can be used for. If in the case of USD or EUR etc they are accepted for payment of goods or services by a third party who is not the issuer then they are e-money. In this case the issuer has to be either authorized or registered as an Electronic Money Institution (EMI). The key ...


4

Is a Bitcoin a security? The SEC hasn't said that it believes it is and not communicated with or taken action, formal or informal, asserting that a miner is issuing securities or that exchanges are engaging as brokers of a security, which is a regulated activity. Is a Bitcoin an asset or commodity? Does your grocery store need SEC approval to sell ...


3

That's not a very secure system. You should set up a 1-of-2 multisig address with the user instead and have them send funds to that address. They're still placing a lot of trust in you but they don't have to expose their private key. As far as your original question goes: I don't think so since they're still technically in control of their funds (just you ...


3

There's actually a lot going on in the California state legislature regarding virtual currency regulation, and you may soon need a specific license from them (although the bill in question---AB1326---still needs to pass). You can read a little more about it here from CoinCenter. Until that particular bill passes, it's a bit of a gray area, but it would be ...


3

All services that deal also with fiat money, apart from cryptocurrencies, must comply with specific AML (Anti Money Laundering) and KYC (Know your customer) rules, which can be more strict depending on their jurisdiction. AML/KYC Explained: https://bitcointalk.org/index.php?topic=454795.0


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A virtual currency exchange does count as a money transmitter, although there is some discretion for FinCEN here. The relevant passages are the following: An exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. and An administrator or exchanger that (1) accepts and transmits a ...


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 ...


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Therefore, those who managed to buy it early and sell it in time, get profits. Actually, they don't. For three reasons: To execute a pump & dump, you have to keep buying even after the price has risen above the price it would have if you were not buying. That means you have to buy high. Buying high is not part of any profitable strategy I know of. For ...


2

Legality depends largely on jurisdiction, and you didn't specify one. In addition, the regulation of cryptocurrencies is constantly in flux, and even in a given jurisdiction it's difficult to say which laws apply to them and which don't. It also may be in question whether fiat money is involved, or are these scammers selling their altcoins for bitcoin. As ...


1

It depends. Typically as a money transmitter, you are neither the owner of the transaction nor the beneficiary. You are acting as an intermediary. Whether the funds are pushed to you, or the funds are pulled by you, via authorization, the fact remains the same, you are acting as an intermediary to execute the transaction. In this case, the 'authorization' is ...


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since the government controls the physical internet They do not (at least in North America or Europe). The internet is a network of communication. An Internet Service Provider (ISP) can be private or public, but either way it's function is to direct addressed transmissions to those addresses (IP addresses). This network is a kind of base layer. The early ...


1

They can't entirely ban trading for all of their citizens worldwide, but a government can ban trading within the country itself. This means that it will be much harder for people to trade and thus drastically reduce the number of people within the country that are trading. However while you can trade anonymously, any earnings made from trading are usually ...


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Commodities exchange, yes. Stock exchange, no. Stocks are securities, so it wouldn't be appropriate to trade bitcoin on a stock exchange because they don't have any relation to the assets or liabilities of an underlying company. Bitcoins are valuable (or not) only intrinsically. This is closer to a commodities exchange, which is what CEX.io does and ...


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