Quote from: mayax on January 25, 2015, 02:10:43 AM

Quote from: ScryptAsic on January 25, 2015, 01:39:08 AM

Quote from: jonald_fyookball on January 25, 2015, 01:29:46 AM

Quote from: saddambitcoin on January 25, 2015, 12:26:55 AM

Quote from: freebit13 on January 24, 2015, 06:17:43 AM

From the document, it doesn't look like this was from simple face to face transactions using localbitcoins... it looks like he was somehow involved with running an exchange.

Unfortunately I think the gov sees face to face transactions using localbitcoins as "running an exchange".

Even the LBC site gives you tips on how to "run a bitcoin cash exchange for fun and profit".

It is a shame that he faces time in prison for allegedly doing something so harmless.

A prosecutor would likely have a hard time convincing a jury
that a few transactions is running a business.

However, a large number of transactions is another story.

Unfortunately, if you are going to be doing a lot of
trading, you need to use a legitimate exchange
to keep your nose clean.

I consider this an assault on individual rights as
one should be free to transact voluntarily with
other individuals, but that's the current reality.

You are generally considered to be a MSB regardless if you are an actual "business" as long as you engage in the practice of "transmitting money" (which is a complex concept.

I think even if you are operating without a MSB license you will most likely (IMO) be legally safe as long as you do not knowingly transmit money for people who are breaking the law (for example proceeding with a transaction after being told the funds were from some illegal activity)

correct. as MSB you are covered IF you make due diligence. But if you are not MSB you are not safe at all. you break the law by transmitting money without license. I really do not understand why this guy risked so much....also, others are doing the same... hard to understand what's in their mind.

They probably don't understand the risks, consequences nor the law covering MSB's. All of which are very complicated. While the potential for profit is very large for people who are trading on LBC as the margins tend to be very high