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(not a bitcoin, but shows how retarded this per-state licensing system is) Square Fined $507K In Florida For Operating Without A Money Transmitter License

(not a bitcoin, but shows how retarded this per-state licensing system is) Square Fined $507K In Florida For Operating Without A Money Transmitter License submitted by m-m-m-m to Bitcoin [link] [comments]

Adam S. Tracy Explains The State of Incorporation (Fallacy) Decision

Transcribed from:
Where should I incorporate? What state? I get this question five times a week. What state is better, what state helps me? What state has a better tax regime? Why should I incorporate in Nevada versus Delaware? Right? And the reality is the answer is completely over hyped. There couldn’t be a bigger misunderstanding in terms of what states have certain rights and privileges that others don’t. Your traditional states are like Delaware, Nevada. And then recently you had places like Wyoming and even Florida that have kind of come on, and almost offered cheaper incorporations as sort of a revenue stream for the state in question. But when you’re talking about running a crypto related business, what’s really relevant isn’t what state you incorporate in, but it’s what state you reside and operate from. So, obviously New York has the BIT license requirement. If you’re talking about state money transmitter laws, like Wyoming, which is a popular state to incorporate in, has some different capital requirements for operators of Bitcoin related businesses typically exchanges, right? But at the same time Wyoming is a very small state, and you’re probably not operating from there, statistically speaking. So, you really don’t have to worry about the laws. So the reality is you can incorporate in like a Wyoming and then operate from Illinois, and you have to worry about the laws of the state that you are actually operating from. Right? And if you want to operate in another state then you’ll have to worry about the laws pertaining to cryptocurrency or money transmission in that state, right? But if you can find your activity to a certain state or the nature of your activities such that you can deem every transaction you effectively encounter to occur in that state, which by contract you definitely can, then you only really need to concern yourself with the laws of that state. So to answer the question, you know, I’m a big proponent of cost, right? Like when I look at Delaware, you’re looking at almost $1,100. When I look at Nevada, they hit you with this business list, which takes their $150 Corporation and makes it almost $800, and you don’t really get a great deal of benefit from that. Right? I mean, there’s some speed and convenience elements to Nevada that make it very cogent, like in terms of having a robust online platform and quick turnarounds of formations which to a large extent can make it worthwhile. But, you know, from a legal perspective, you look at a state like Wyoming, which is really just pattern, its corporations code against the Nevada code, which in turn was an amalgamation of Delaware — the original sort of corporate Hub — and then all the case law that has developed which makes Delaware an attractive place to incorporate. But if you’re looking for convenience and sort of speed, Nevada’s great. If you’re looking for the same legal protections and not keen to pay thousands of dollars a year, especially when you start increasing number of shares in your paid-in capital or the tax your yearly franchise tax can go through the roof, then look at Wyoming. You can incorporate online immediately. It’s $100 cost, and you get the same protections and privileges as Nevada. So, you know, but at the end of the day, any state is pretty much on par with all others. I think the difference is very overstated, and I think you have certain states that have a reputation, but the reputation is a bit overstated for what they really get. So when you’re talking about a crypto-based entity, look first at what the particular cryptocurrencies (if there are any) laws are in that state and even to the extent and how they’ve interpreted things like money transmission license applications for exchanges in bitcoin ATM networks, things like that, look into those which a lot you can get with a simple Freedom of Information Act request that sends to the right Bureau. They’ll give you copies of the application, you get a sense of it, but don’t let the alleged preference of one state over another guide your decision for a crypto-based entity because there’s simply nothing compared to it. We’ve got to rely on the state that you’re from.
If you have any questions regarding where to incorporate, be sure to contact attorney Adam S. Tracy.
A former competitive rugby player, serial entrepreneur and, trader, attorney, Adam S. Tracy offers over 17 years of progressive legal and compliance experience in the areas of corporate, commodities, cryptocurrency, litigation, payments and securities law. Adam’s experience ranges from commodities trader for oil giant BP, initial public offerings, M&A, to initial coin offerings, having represented both startups to NASDAQ-listed entities. As an early Bitcoin adapter, Adam has promoted growth of cryptocurrency and offers a unique approach to representing crypto-clients. Based in Chicago, IL, Adam graduated from the University of Notre Dame with dual degrees in Finance and Computer Applications and would later obtain his J.D. and M.B.A. from DePaul University. Adam lives outside Chicago with his six animals, which is illegal where he lives.
Primary website: Twitter: Youtube: Linkedin: Facebook: Instagram: @adamtracyattorney Telegram: @adam_tracy Skype: @adamtracyesq Email me: [email protected]
submitted by bitattorney to u/bitattorney [link] [comments]

Here Comes the Government Again

First of all, I'd like to point out that I'm not the average Reddit user, and that I rarely post (pls dont bash ;c;).
But something on the news today got me jumping, and I think it could be of concern for the future of Bitcoin trading, thus me posting here in the first place.
If you ever did business on, or ever had bitcoins in hand at all, then this is of matter for you to read further.
Last February, A canadian called Pascal Reid, was arrested and is currently being used as the puppet of the state to make your "future" life a whole lot harder.
The State of Florida is charging Pascal Reid with 2 counts of money laundering and 1 count of operating a money service business without a license (really?).
Pascal pleaded not guilty on all 3 counts. Pascal was setup and arrested based on a fictitious story about the source of the money involved in the transaction.
The arrest affidavit also mention Pascal requesting illegal identification when no such request was made and Pascal declining the purchase of stolen credit cards offered at several occasions by the Secret Service agent.
Long story short, the guy was the average bitcoin trader, and when an undercover agent went ahead, saying he wanted to buy stolen credit cards, Pascal refused, then they SWATed him anyways, creating false evidence.
The government is simply trying to pave the road to make future cases a lot easier to solve for the police department, meaning that if the false accusations of this case are put forward and the guy gets imprisoned (for a minimum of 25 years, by the way), then whatever case includes Bitcoins, is going to be referred to that case in particular.
The guy is totally innocent as far as the reports go, never did anything wrong that could have harmed anyone directly, and simply wanted to make Bitcoins more of a reality, like all of you guys.
So, the thing is, we may be required to own a license to sell bitcoins at some point if we allow that, because the long term goal of the US government is to put laws and regulations on the currency, and eventually control it.
Pascal geared himself with a super legal team, but however, it costs around 25,000$ per month (Ouch!).
His mom put up a small website in order to raise funds:
Here's the full report:
WHY SHOULD YOU CARE? (AKA the website puts it better than me :v)
The State of Florida is using Pascal as an example and to set precedents and to establish new regulations in regards to the new digital currency.
They have setup a fictitious story and contacted Pascal directly from the website in order to trade bitcoins.
With these charges, even a first offender who has never been arrested before, could faces a maximum prison sentence of 15 years on one of the money laundering charge, an additional 5 years for the second money laundering charge and 5 years on the unlicensed money transmitter charge for a total of 25 years if the judge was to give a consecutive maximum sentence.
For this reason, Pascal needs the best legal defense available.
The website accepts donations via Bitcoins and PayPal alike. I already donated 10$, but talking about it is much more powerful IMO than giving money.
So, on that note, thanks for reading my post, and I hope that this will induce some thinking on the future of the awesome, cat-fueled currency that is Bitcoin.
EDIT #1: Wow ༼ ༎ຶ ෴ ༎ຶ༽. Over 500$ raised in one day. I-I just can't... * cries of joy *
EDIT #2: Here is the full news report about the event on TV:
Lot's o' Love
An occasional Redditor!~
submitted by Bungeetaco to Bitcoin [link] [comments]

PROVISTOR: Run OpenBazaar in the cloud with one click.

TL;DR; We install OpenBazaar in the cloud for you, you just focus on selling or buying stuff. You can now use OpenBazaar on any web browser, so you can now use OpenBazaar in Windows or even your mobile phone
Provistor is "IT As A Service" for OpenBazaar sellers and buyers. In english: If you don't want to deal with setting up OpenBazaar to either start selling, or buying things on the network, we make the process very easy for you.
As OpenBazaar contributors we've been able to identify several key problems that need to be solved, among them, at this point OpenBazaar is far from consumer friendly to install and run, network issues are abound when running from NAT/Firewalled connections (like the one you probably have at home or in your office/school), it is in the seller's interest to have a store running 24/7 and that it's not slow. It is also hard for the buyers to run OpenBazaar as there are no windows installers nor a mobile version of the product.


Provistor currently requires you to have a Digital Ocean account, this is a cloud hosting provider that is very usedeveloper friendly, they bill by the hour (good for buyers that just need to open up OpenBazaar every time they need to shop, the machine can be turned off when not in use, you'd just pay about 1 cent per hour of use) or month to month (good for sellers). If you use this COUPON LINK you get $10 of Digital Ocean balance, which gives you over 850 hours of shopping for free.
You provide Provistor with credentials to access your Digital Ocean account (OAUTH2 style), and then we fire up your remote computer and set up the store for you. You can decide what IP addresses can access the OpenBazaar store via web browser, your current computer's ip is allowed by default, but if you want to shop on OpenBazaar with your phone, you'd have to add your phone's IP address to the whitelist, and then you can shop on OpenBazaar from your phone's web browser, same goes for Windows users, they'd access their stores with their favorite web browser.
Buyers can come and use Provistor for free, launching one store is free, and that is all you need to shop.
Sellers with a single store also get in for free. More dedicated sellers with multiple stores pay just a few bucks to get their stores set up, no headaches, we take you all the way to the point you can actually start working on your store, so you can start selling and earning in bitcoins, thus making Bitcoin more useful, and therefore more valuable.


Provistor is available now. Go to, sign up, launch your OpenBazaar store, see you in like 6 minutes on the OpenBazaar Network.


Hell yeah. (We'll also take your nasty fiat)


Very soon.


Please *contact us, we want to know from you which ones to aim for next.


When they exist, we will. Please let us know of any other p2p stores or services you'd like to run in the cloud.


Our founding team is made up of an OpenBazaar developer (also a BitTorrent Developer) and Bitcoin ATM/Finance services developers/entrepreneurs out of Miami, FL (we happen to be Money Transmitter licensed in the state of FL and we'll be doing Bitcoin ATMs down here too very soon, *contact us if you want to do this kind of business down here in Florida).


One of our developers is the original author of the OpenBazaar installation scripts, so who better than we to setup your OpenBazaar node?
Enough talk, start selling and shopping now.
*CONTACT US: [email protected]
submitted by gubatron to OpenBazaar [link] [comments]

Bitcoin selling/trading question on Localbitcoin/Paxful...

So I want to start selling/trading Bitcoin on Paxful or Localbitcoin...I don't really want to make TOO much profit...just as a little side income...however... I'm reading that I need a money transmitters license to do this? I've read into that, but it's really expensive to get that license and complicated too... Anyone do alot of trading on local or paxful? Like...what profit margin per month am I looking at to actually use the money transmitters license? I've tried googling this information...but it was no help. All that kept showing up were some florida men that got arrested for trying to buy credit card #s with their sales.
submitted by chillip135 to Bitcoin [link] [comments]

Let's talk about state anti-money-laundering laws.

I live in Texas. After reading over penal codes. Link below
Most of it is with the intent of using money for criminal activity.
On two people are charged with selling bitcoins for cash at a local meet up, it makes you wonder if what we're doing is not legal. The two people face three charges; two related to money laundering amounts under $20,000 and between $20,000 and $100,000. The third charge relates to money transmission services for amounts between $20,000 and $100,000.
They were trying to sell 30k worth of bitcoins for cash in Florida. Texas law is very similar.
So my question to anyone who can answer this is, are we with in the law to sell bitcoins from an exchange or person to person for cash?
Tell everyone to read up on your state laws before you exchange bitcoins.
Also reading that Texas became the second US state to explicitly require foreign-located money transmitters (including Bitcoin exchangers and administrators) to obtain a state money transmitter license if their customers are residents of Texas. The state of New York had taken a similar stance back in March of 2011.
submitted by Xmarines to Bitcoin [link] [comments]

Bitcoin Q&A: Are Lightning node operators Money Transmitters? Crypto Markets Decline; New BitLicense & Money Transmitter; Bitcoin Derivatives; Crypto VAT Tax Bitcoin Q&A: Iterating nonces and the block reward Everything You Need To Know About Money Transmitter Licensing FinCEN Registration & Money Transmitter Licenses

Bitcoin Money Transmitter License Guide. Throughout the world, the idea of using money to pay for goods and services is not a complicated thought for consumers. On the business side of transactions, the movement of money can become more complex, especially for companies that operate as money transmitters. While there is no hard and fast definition of a money transmitter that covers all ... Relevant Statute. Chapter 560, Florida Statutes – Money Services Businesses “Money Transmitter” Definition “Money transmitter” means a corporation, limited liability company, limited liability partnership, or foreign entity qualified to do business in this state which receives currency, monetary value, or payment instruments for the purpose of transmitting the same by any means ... Florida Money Transmitter Licensing Requirements: Who needs to be licensed as a money transmitter licensee? Under Florida statute, all businesses who engage in the activity of a money transmitter must obtain a money transmitter license.The licensee may conduct its business at one or more locations within Florida, through branches of by means of authorized vendors, as designated by the licensee. Keep reading for a brief overview of how crypto is viewed across states and whether you require a bitcoin money transmitter license. How the Federal Government Views Cryptocurrencies Altogether the federal government’s stance toward cryptocurrencies has been to leave states alone in determining how to regulate crypto. Money Transmitters Part II: Money Transmitter: This license authorizes the holder to transmit currency, monetary value, or payment instruments, either by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or other businesses that facilitate such transfer, within this country or to or from locations outside this country.

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Bitcoin Q&A: Are Lightning node operators Money Transmitters?

Payments expert Adam S. Tracy explains the concept of passporting and how it applies to foreign money transmitter licenses in the United States. — A former professional rugby player, Adam S ... Adam Tracy Explains State Money Transmitter License Agency - Duration: 5 minutes, 44 seconds. 37 views ; 2 months ago; 5:38. Adam Tracy Explains FinCEN's Travel Rule & Cryptocurrency - Duration: 5 ... Bitcoin's Regulatory Nightmare Is About to Get More Frightening - Duration: 3 ... Why Do You Need A Money Transmitter License If You Are Licensed Outside The US? - Duration: 3:30. Faisal Khan 266 ... He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters. Are Lightning nodes money transmitter businesses? Will they be subject to Anti Money Laundering laws? Will operators be subject to legal action as mixing service operators have? This question is ...