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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 ...


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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 ...


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Yes - FinCen released details about this within the past month stating that Bitcoin "exchanger" must comply with regulations. Note that this may apply not just to exchange "houses", but also to individuals who exchange Bitcoin for USD. From the FinCen summary: A user of virtual currency is not an MSB (money services business) under FinCEN's regulations ...


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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", "...


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The short (slightly oversimplified) answer is that most consumer protection oriented laws (including Money Services Business and Money Transmitter laws) apply to the consumers themselves. So if you serve customers in the US, you must comply with the laws that protect those customers. IANAL, YMMV, etc. Consult an attorney specializing in MSB/Money ...


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The issue with FinCEN and Regulatory compliance is this- How do they know that the Bitcoin Mr X is trading, exchanging, using, purchasing etc was not just gained for the sale of child porn, drugs, internet gambling, etc. A credit card company can block internet gambling, it can disallow the use of its card to openly pay for illegal stuff like drugs, ...


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Regulators have not yet really figured out how to deal with Bitcoin, so things can change in the future. It should be noted, however, that a Federal judge in Texas has ruled that Bitcoin is a legal currency. This came about when a guy set up a Bitcoin ponzi scheme and then tried to claim that he couldn't be persecuted because Bitcoin isn't a real currency. ...


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Right now Bitcoin is the round peg in the regulator's square hole. If Bitcoin is deemed to be a security, then certain restrictions might apply on how it is bought, sold, and held. But Bitcoins themselves are not a debt, or a promise, or anything similar so it probably isn't a security. If Bitcoin is deemed to be a commodity, then certain restrictions ...


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The short answer is, it is complicated. Below are some resources that may helpful. As a disclaimer none of the below statements constitute legal advice and they should not be relied on. I recently co-authored an article that contains some background information to your question. William B. Fleming and Joseph Evans, Bitcoiners in the Courtroom Part I: ...


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I think the case of mining as part of a pool is, in reality a very special case of providing a cloud based server farm service. Essentially, those operating such a server farm are having its use contracted to the pool for an hourly (or shift) fee. The fact that the payment for the service is done in bitcoin does not make the server farm operator a miner, ...


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