Quote from: DeathAndTaxes on May 15, 2013, 05:03:28 PM

Quote from: fitty on May 15, 2013, 04:57:28 PM

It has nothing to do with Bitcoin. He was exchanging SOMETHING for USD. CampBX by all reports is properly licensed. Their Dwolla is working just fine.

Of course it has to do with Bitcoins.

Amazon accepts USD for DVD. They also pay USD for DVDs. Is amazon (and every retail business in the world) a MSB? I mean commerce by very definition is the acceptance of money for goods & services.

However FinCEN provided guidance in March, 2013 indicating that virtual currencies* are subject to MSB regulation:
http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html

Thus it isn't that MtGox exchange "something" for real currency but that they exchanged "something which is regulated by FinCEN" for real currency.

Prior to March, 2013 there was no real reason for MtGox to register, post March, 2013 I am not sure how/why (as the worlds largest Bitcoin exchange) they thought they would remain under the radar.

* Only entities which buy/sell/trade/exchange virtual currencies for real currencies fall under MSB regulation. FinCEN does indicate that buying or selling goods & services for virtual currency is not a MSB.

I agree... DHS has a solid case against MtGox.

There is no way around it. If you guys didnt pay attention re-read this :

Quote

The informant simply created accounts with Dwolla and Mt. Gox, bought bitcoins, and then changed them back into dollars. Tracing that money, HSI was able to see that the money passed through a Wells Fargo account, number 7657841313, which was created by a single authorized signer: Mark Karpeles, the president and CEO of Mt. Gox

Also check Paypal Acceptable Use Policy, buying a selling checks are also considered as money service business. This is nothing special, its clear as night and day.

This also help Coinlab to have a solid case against Mt.Gox.

I would withdraw all the cash out b4 the case proceed any further. Bank wiring still works and its gonna be for a little while.