Quite honestly I don't even understand the FINCEN claims. How is Mike a money transmitter if no USD ("real money") is touched?
I don't know what FINCEN's specific claims are, but he is literally a money transmitter. Someone sends him bitcoins ("convertible virtual currency") and he mails bitcoins to someone. I doubt they are concerned about him selling single small denomination coins, but he does sell large denominations (100 BTC bar) and coins in bulk (rolls of 20 or 50 BTC) that are worth multiples of $10,000.
what about smoothie, he's in Hawaii. Would this affect him too?
Last I heard, Hawaii is still in the U.S.