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Regulation Under Money Transmitter Laws

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Regulation Under Money Transmitter Laws

Legal firms transfer money from one party to another via demo delivery and seek licenses. Based on US What Pat Patriot Prohibits is doing as an unlicensed shipper.

All financial transfers must comply with the Banking Secrecy Act (BSA), which requires them to register with FinCEN, implement an anti-money laundering program, keep a register of all customers and report suspicious transactions. These laws apply to customer protection as well as money laundering and terrorist financing.

However, in March 2013, FinCEN issued instructions on how the BSA allocates virtual funds. In this guide, cryptocurrency users are divided into three categories:

User – a person who earns money to buy products and services. Employees are not considered to be transferring money.
Exchange – a merchant who exchanges or transfers money for real money, cash, or other virtual currency. From a legal point of view, these people are flexible and then read them according to the rules of FinCEN.
Management – a company that deals with the issuance of virtual currency and the ability to convert (withdraw) money in the system.

The problem with the guide above is that it doesn’t match the Bitcoin system correctly. For example, it’s not a clear decision of who you will join if you buy bitcoin for anything other than using it – for example, speculating on its value or transferring money. Additionally, Bitcoin miners are not organized into the admin category as they cannot trade bitcoins through the system, but there may be money changers (and therefore currency exchanges) if they sell the bitcoins they release at “real” prices.

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