It is not easy. Meaning, you need to have adequate finances for it. To operate a crypto exchange in the United States, you would need a Money Transmitter License in each state (including the BitLicense in New York). This would legally allow you to operate an exchange in the United States. There may be SEC […]
Is a bitcoin wallet like blockchain.info is a money transmitter as they are sending the transaction on your behalf. Also, that goes for any wallet company based in the USA. Is this true?
The answer is, it depends. In the case of Blockchain.info they are not classified as an MSB, because they do not have access to your funds. In their legal description they claim: 5.1.1 The Wallet is provided to you exclusively by Blockchain Luxembourg S.A. At no point will Blockchain ever take custody or control over […]
Are you considered a money transmitter if your end users sends you their private keys to send funds on their behalf?
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. […]
Is Ripple a money transmitter under the FinCEN regulation? Do they have a money transmitter license?
In 2015, FinCEN fined Ripple for acting as a money transmitter and also violating various sections of the BSA (Bank Secrecy Act). WASHINGTON, DC – The Financial Crimes Enforcement Network (FinCEN), working in coordination with the U.S. Attorney’s Office for the Northern District of California (USAO-NDCA), assessed a $700,000 civil money penalty today against Ripple Labs Inc. and […]
Many banks are willing to work in this arena, except they will not just do business with any exchange that just comes along. You have to bring a strong compliance program, once that is pragmatic and not theoretical, a great introducer and a solid business plan for the money the bank will take on the risk they take on […]
I like a regulated money supply, I don’t speculate, and I don’t care if my transactions are anonymous. Why else might I want Bitcoin?
tl;dr Unshackled movement of money! Let me cite an analogy that would help you understand better. If email was regulated and you could only send email between approved providers, would you accept? Well your answer might be sure! You’ll accept. You don’t see any reason not to as long as the system works. What if I told you, […]
How much more or less expensive is it to transfer money from one country to another using Bitcoin than the traditional banking system?
In many cases, just marginally better. Lets say a traditional remittance transfer is 3% between US and Philippines, so for the $1,000 you are sending, the fees is $30. On the Bitcoin front, this might be about 0.75% to 1.0% at best. So you are paying $7.50 to $10 for the transfer. Great savings? Perhaps! […]
Possible? Yes. Can you do it today? No, Not yet. PayPal would most likely offer something like this later on, consider’s Square’s huge success in getting on the crypto-bandwagon market.
Should I use Bitcoin or TransferWise to transfer money to myself internationally? What makes more sense financially? I am not in a rush, but don’t want to pay racketeering fees from forex rates.
It depends if you’re able to cash out into fiat using Bitcoin. If that option is available, then Bitcoin might just be the best option. However, you’d be pretty hard to compete with Transferwise. What is the differential we are talking here between the two? Have you done any analysis of it. Assuming the amount […]
Will many countries choose to abandon the dollar for their reserve currency and use Bitcoin instead?
See this Reference Link. Difficult to say. The fiat currencies we have today, have built-in fault lines within them, when it comes to issuance and usage. The US Dollar certainly is the preferred reserve currency of choice at the moment, but if history has taught us anything, it is that nothing lasts forever. Especially empires. I think […]