Re: Will LN Hubs require a Banking License / Banking Cartels will take over Crypto
LN isn't a bank per se, thus won't be eligible for a license... Wouldn't laws regarding banks have to change in order to be able to give licenses to dedicated LN hubs? From the government point of view, a LN hub wouldn't operate with money, so it wouldn't be possible to give a license, or am I wrong?
There will be a clarification of the current Banking laws, that will interpret LN Hubs acting as a Bank and then require by Law they have a Bank License.
The Banks own many State Governments, look at North Carolina, Wells Fargo pretty much controls all of the NC State Government assembly.
They could have them pass a Law confirming LN Hubs are Banks in a few weeks.
LN => Holds access to your Locked BTC funds (BTC Deposits) , Charge Fees, Processes LN Notes payments, & Charges penalties.
Banks=> Hold Deposits, Process their Bank Notes (Checks/ debit),Charge Fees , & Charge penalties
LN=Banks
Thinking a Bank License will not be required , is just setting yourself up for a lot of legal problems , including jail time.
Coinbase gets away with only needing a Money transmitter license, because they actually transmit the actual item onchain.
By LN hubs using a Offchain Representation to transact , they become Banks by processing their own Notes and are not eligible for just a money transmitter license.
