Post
Topic
Board Announcements (Altcoins)
Re: [ANN][DRK] DarkCoin | First Anonymous Coin | First X11 | First DGW | Fork for Masternode Payment
by
coins101
on 11/07/2014, 00:12:13 UTC

Feds Use Patriot Act To Crack Down On Virtual Currency Exchange
http://americasfuture.org/feds-use-patriot-act-to-crack-down-on-virtual-currency-exchange/

http://www.wmitchell.edu/lawreview/Volume40/documents/Middlebrook.pdf

FinCEN acknowledges that the third-party exchange might appear to be conducting a bona fide purchase and thus entitled to an exemption, but notes that the safe harbor
does not apply when the only service being provided is money transmission


What does a masternode do other than transmit Darkcoin?  

An administrator or an exchange that transmits convertible virtual currency to another person or location would be required to register as an MSB.

“An administrator or exchanger that (1) accepts and transmits a convertible virtual currency or (2) buys or sells convertible virtual currency,” however, is a money transmitter unless an exemption
applies.102

It appears that FinCEN is fine with masternode operation as long as the administrator registers as an MSB.

How many masternode operators are registered as an MSB?


That's better. We are moving you closer to the DRK side.

This is really a good point. The trouble is, when the US Marshals sold their bitocoins, did they go to the nodes that conducted the transactions and offer to give them ID details?

No? Arrest them. The point is, they can't.

Nodes are pass-through routers. They are not at the initiation or termination of the transaction. That's the sender and the receiver within crypto land.

The decentralization part makes this the way to enforce regulation. That's what the nice FenCEN chick was saying on the youtube video.

Senders keep records and ID details. The coins don't carry ID, they are eCash. MNs can't ask the coins for ID. Once out of the client, they are in the wild. The recipient becomes responsible for the other end of the regulatory burden - records that need to be kept if needed.