Re: [XSV] ★★ Silicon Valley Coin ★★ | ✈ MailDrop | Proof ✔

Too everyone saying XSV may be in violation of Fincen regulations...

Crypto has been recognized as PROPERTY! Not currency.

Go spread your fud somewhere else.

Facts are not fud. You are obviously not very knowledgeable on the subject. You are referring to the IRS. That has nothing to do with FinCEN requirements. And according to the IRS, anyone redeeming XSV will be required to claim the value on their tax returns. Yeah that's going to work out real well.

This coin can't work because of the issues I have pointed out.

No FinCEN registration = In violation of Department of Treasury

Recipients required to claim value of property in federal tax filings

http://www.irs.gov/pub/irs-drop/n-14-21.pdf

Q-1: How is virtual currency treated for federal tax purposes?

A-1: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.

Q-3: Must a taxpayer who receives virtual currency as payment for goods or
services include in computing gross income the fair market value of the virtual
currency?
A-3: Yes. A taxpayer who receives virtual currency as payment for goods or services
must, in computing gross income, include the fair market value of the virtual currency,

Do your research bro...

Fincen Regulations for Virtual Currencies: http://www.complianceweek.com/new-fincen-guidance-clarifies-corporate-bitcoin-requirements/article/332667/

From the article:
The production and distribution of software, in and of itself, does not constitute acceptance and transmission of value, even if the purpose of the software is to facilitate the sale of virtual currency, FinCEN wrote. As a result, the software would not make the company a money transmitter.

And Finally, might want to do some current events for Bitcoin:
http://bitcoinvista.com/2014/04/05/announcing-free-bitcoins-inside-bitcoins-new-york-to-giveaway-prepaid-bitcoin-cards-to-attendees/

I don't think Bitcoin is registered with FinCEN =)

Did you read the links you posted?

Bitcoin isn't transmitting bitcoin to people like SiliconValley is doing.

The first ruling states that if a user creates or mines a convertible virtual currency solely for their own purposes, they are not a money transmitter under the BSA. The second ruling clarifies that a company purchasing and selling virtual currency as an investment exclusively for the its own benefit is also not considered to be a money transmitter.

The rulings further interpret guidance issued in March 2013. That guidance made it clear that, from FinCEN's perspective, an administrator or exchanger of conveyable virtual currencies that accepts and transmits it, or buys or sells it in exchange for legal tender or another virtual currency for any reason (including intermediating between a user and a seller of goods or services the user is purchasing on the user's behalf) is considered a money transmitter for regulatory purposes.

These guys will essentially be money transmitters and fall under FinCen requirements. Doesn't matter anyway since these guys have no intention of doing the maildrop anyway.

"accepts and transmits" is where I assume your argument lies so, if it said "accepts or transmits" you would have a point, but with it being AND, the devs would have to be receiving coins from Silicon Valley to call them "Money Transmitters".

Might also want to check your definition of "Administrator":

An administrator is a person engaged as a business in issuing (putting into circulation) a virtual currency, and who has the authority to redeem (to withdraw from circulation) such virtual currency.

Here comes another AND! The devs would need to have the authority to withdrawl XSV from circulation, which is impossible once said coins leave the pre-mined address!

Nice Try, Learn some basic legal jargon before attempting to use it in your arguments =)