That was not entirely helpful, but is at least a starting point. Simply exchanging foreign currency does not automatically make you a money transmitter. To find out if you qualify as a money transmitter, you have to look up the regulations. I found an unofficial copy:
Electronic Code of Federal Regulations; Title 31: Money and Finance: Treasury; PART 1010GENERAL PROVISIONS; Subpart AGeneral DefinitionsThe relevant subsection is subsection (ff)
Selected quotes:
(ff) Money services business. A person wherever located doing business, whether or not on a regular basis or as an organized or licensed business concern, wholly or in substantial part within the United States, in one or more of the capacities listed in paragraphs (ff)(1) through (ff)(7) of this section. This includes but is not limited to maintenance of any agent, agency, branch, or office within the United States.
(1) Dealer in foreign exchange. A person that accepts the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more countries in exchange for the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more other countries in an amount greater than $1,000 for any other person on any day in one or more transactions, whether or not for same-day delivery.
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(8] Limitation. For the purposes of this section, the term money services business shall not include:
...
(iii) A natural person who engages in an activity identified in paragraphs (ff)(1) through (ff)(5) of this section on an infrequent basis and not for gain or profit.
My reading of that is that you can set up a bitcoin ATM in your place of business with a $1000/day (global) limit with no problems and no KYC requirements.
If you want to sell more than $1000/day, you are allowed to do that too, all long as you don't make a business out of it (maybe one transaction every quarter).
Edit: I suppose I should look up the Canadian regulations too: I think that is where I pulled the quarterly limitation from.
Yeah, but they are talking about doing it frequently and for a profit. You know - buy low - sell high. Anything else is just masterbating.