What regulations would a peer to peer money transfer platform face (TransferWise model but without an intermediary)? The platform does not touch money. It allows peers to find matching, opposing transactions and conduct the money exchange themselves.

If a State or Federal regulator cannot find an exact way to pin this marketplace down, then they go after intent. Barring the problem the marketplace will face with respect to trust, etc. let us look at the intent. The intent will clearly how that without the market place, the transaction cannot take place. How […]

Read More

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 […]

Read More

Do I need a money transmitter license if I receive money on behalf of a person in another country (e.g., Ghana)? I make a pay out to this person in Ghana at the end of every month. This arrangement prevents excessive microtransaction fees.

This makes you an intermediary, when you cited on behalf of a person, implies you are neither the owner of the transaction, nor the recipient and hence this makes you an intermediary, and where ever you go, in most countries this would classify you as a money transfer business and thus require you to get licensed.

Read More

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 […]

Read More

Would it be legal in the US for a business to effectively create their own currency in which all of their products must be bought? Anyone who wanted to buy anything would exchange the USD to the store currency. There would be no exchange fee.

Yes. This would be legal, but then again, IANAL (I am not a lawyer). If you replace the word ‘currency’ here with the word ‘store-credits’ or ‘loyalty-points’ the whole scenario doesn’t look so bad after all. The condition here would be that the issuer of this currency, i.e. you, can issue the currency (as much […]

Read More