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Anyone acting as a BTC broker dealer, exchange, wallet, mining pool, speculator or miner that sells BTC has been put on notice that they're required to comply w
by trotsky 14y ago
Anyone acting as a BTC broker dealer, exchange, wallet, mining pool, speculator or miner that sells BTC has been put on notice that they're required to comply with a bunch of regulations including licensing, transaction reporting and suitable checks to ensure your counterparties aren't terrorists or people laundering money.
- wilfra 14y agoAre you sure it applies to speculators? Can you quote that part?
- trotsky 14y agoI'm not sure, no. However: 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. Consider a common flow of: speculator USD -> counterparty -> speculator BTC -> counterparty -> speculator USD The transaction in the middle has the speculator exchanging BTC between two parties without any goods or services changing hands.
- wilfra 14y agoYou can speculate in real currencies without adhering to any special regulations, so there is no reason to think they would try to twist the word 'exchange' here to mean that.
- trotsky 14y agoA user is a person that obtains virtual currency to purchase goods or services
- wilfra 14y agoAs I said, you can buy real currency as a speculator and you aren't required to follow any regulations. Forcing speculators in digital currencies to meet the same requirements as financial institutions would be absurd. I realize one could make a case that that is what they mean here but common sense dictates that was not the intent, and it is extremely unlikely speculators have anything to be concerned about.
- wiredfool 14y agoThe way I understand it, you are required to comply with OFAC and other Treasury programs in any transaction you make. Some transactions aren't that risky, because people with bigger pockets have validated it already (generally between US bank accounts). But once you get outside that (like, international, or bitcoin) the requirements to prove that you're paying attention get Hard. If you're HSBC, that's not a problem. But for everyone else...