Quote from: MSantori on May 22, 2013, 10:58:34 PM

Quote from: Stunna on May 22, 2013, 10:52:22 PM

What I've been pondering is how current major exchanges and transmitters such as coinbase managed to get all of these licenses when they started up.

They are not licensed as money transmitters.

Quote from: Stunna on May 22, 2013, 10:52:22 PM

If one were to hypothetically only accept Paypal as payment and not accept other forms of payment, would they still need these licenses?

It would depend upon whether that person actually held or converted any bitcoins or dollars.

Very true thanks for correcting me, From their site:

Quote

Coinbase is not a money transmitter. Coinbase assists its users in Bitcoin transactions.

I don't fully understand how Coinbase operates, how exactly are they not a money transmitter, you send them money and have bitcoins sent to you. Are they simply having Mtgox send the bitcoins?