I just don't get it.... why people are getting into legal trouble with Bitcoin. How can they say you need a Money transmitter license for Bitcoin? What is the difference between Bitcoin and Swagbucks or XBox points? To me it's just a digital product with no need for Government regulation at all.
Fiat in, fiat out. There is your simple answer..
That is WAY oversimplified. If that was the case, then PayPal would not need to be licensed. Same with MoneyGram, Western Union, Square, etc. Using fiat has nothing to do with it.