Quote from: chopstick on April 04, 2015, 07:26:19 PM

Quote from: BurtW on April 04, 2015, 06:47:28 PM

Quote from: chopstick on April 04, 2015, 06:33:44 PM

I'm just saying, if you are doing really low volume, it probably won't matter. But if one day they decide to prosecute BTC sellers in your state like they have in FL and CO, this could very well happen to anyone. But you can prevent it by being registered as an MSB with FINCEN (which is free) and implementing an AML / KYC policy. For your AML policy, you probably won't be able to do transactions over 3k unless they provide ID and proof of residence. It would probably be a good idea not to do any transactions over 3k, period.

If they mention using the BTC for anything illegal, it's a good idea to assume the customer is an undercover federal agent and you must terminate the transaction immediately.

I have heard it said that free legal advice is worth exactly what you pay for it.

Well Burt, I'm just going off what I have learned in my personal time selling BTC. In fact, I'm just repeating what many other seasoned traders have said already, and what the company I used to work for has told me.

There are sellers who process millions of $ worth of BTC transactions through their bank accounts, have been investigated by the FBI, and cleared. They are all registered with FINCEN and implement AML / KYC policy.

The feds can, theoretically, arrest anyone who sells BTC without being registered as an MSB. I hold no illusions that they can pretty much do whatever they want if they feel like it. It happened to you, it could happen to anyone. And I know full well what their motivations are (greed, among other things.)

I was just stating the obvious that it is possible to mitigate (but not necessarily completely eliminate) your risk by following certain guidelines. Hopefully, it will be helpful to someone. They will figure this out on their own anyway.

That being said, I very much hope you prevail in your fight against government over-reach. I truly wish you the best of luck.

Well said. You can choose a country, you can't choose its laws, just or unjust. No ill will in saying this, I'm certain this is not what Burt wanted nor what he deserved.