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Specifics on Bitlicense

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dirtyboots702

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Location: SLC

Being as a lot of the regulation has to do with AML and KYC...would the following scenario fall within the regulatory language, or not...

Merchant outside of NY sells services to a customer in NY for BTC only. Merchant deals strictly in BTC and alts...BUT.......the purchaser in NY acquired their BTC via fiat on an exchance, local trader, etc...

Since that BTC has fiat connected to it, is the merchant responsible to know that and does it then fall under the language of bitlicenses? And is there a way to see what BTC, mBTC have fiat 'blood on their hands'?

Posted on July 22, 2014 at 12:52 PM

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• ltb4me

  

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  I think the current draft of the regulations would encompass this. Even if the merchant didnt know the buyer was from NY, they technically are required to collect information on EVERYONE they do business with so even if someone is not a resident of NY, they can prove they are a resident somewhere that is not NY. Even if the NY buyer bought their coins on an exchange, the merchant doesnt know that and would still technically be required so that in the event of an audit, they can prove the coins came from a verified person in NY and not just some random customer who happened to be from NY upon further inspection, who happened to by from an exchange that also followed the guidelines NY requires.

  Posted on July 22, 2014 at 8:05 PM
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• cryptofarmer

  

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  Too bad we can't hold politicians to the same regulations they impose on others.

  Posted on July 22, 2014 at 10:01 PM
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• cryptofarmer

  

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  Now what if we became less worried on how governments could regulate Bitcoins and more concerned about how we can use the Bitcoin technology to regulate governments.

  Posted on July 23, 2014 at 6:33 AM
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• invincible

  

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  @cryptofarmer Too bad we can't hold politicians to the same regulations they impose on others.

  Citizens Arrest anyone? xD

  Posted on July 26, 2014 at 7:57 PM
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• SkillfulHacking

  

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  Location: Syracuse NY

  I'de really like to know how it will end up affecting Altcoins/Ether and ride on bitcoin platforms such as XCP and Mastercoin etc. Doesn't look like it will end well for NY'ers if the legislation goes through in its current form.

  Posted on July 28, 2014 at 11:07 AM
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