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Showing 20 of 70 results by Malophor
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Board Long-term offers
Re: Invest your BTC - Guaranteed 5-10% profit in 7 days - 1 BTC max
by
Malophor
on 26/10/2012, 19:40:27 UTC
Perhaps a bit more details on what you are doing to earn such a high percentage? Otherwise you come off as a scam -- too good to be true.
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Topic
Board Project Development
Re: [Idea] Trade Anonymity for Trust
by
Malophor
on 25/10/2012, 21:35:17 UTC
The information that is verified would remain secret. Simply the fact that they have shared that information AND that it was verified would be shared. Big difference.
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Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 25/10/2012, 08:43:45 UTC
I wonder if it changes if you send a physical print out of a private key or mt. gox code.
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Topic
Board Gambling
Re: DiceOnCrack.com | If you thought dice was addicting...
by
Malophor
on 24/10/2012, 17:32:07 UTC
That's awesome -- nice work!
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Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 23/10/2012, 18:25:06 UTC
Quote from: DeathAndTaxes on October 23, 2012, 06:14:17 PM
Quote from: Malophor on October 23, 2012, 06:10:10 PM
The scenario I described to them on a previous call was starting a business that offered a website accepting credit card payments in exchange for bitcoins. It took about an hour to explain what bitcoins were, why people would be interested in the business, and what bitcoins are used for. I agree that the reply message was vague as to the reasoning, but, I don't really care to challenge their lawyers on the matter. I really just wanted a yes or no answer. And I got it. So, if you are going to sell bitcoins for dollars -- register as a MSB. It's actually not that difficult. Being a money transmitter (different than MSB) is on a state by state basis and it seems to have a large cost of entry.

Worst advice ever.

Based on what the agent told you registering as an MSB would be insufficient.  He stated that you need to register as an MSB BECAUSE YOU WOULD BE A MONEY TRANSMITTER.  Registration as an MSB (selecting the activity of Money Transmitter) would then open one up to the state requirements for Money Transmitter.  Not meeting those requirements would result in penalties (possibly even jail time).  One couldn't even argue they believe they aren't a money transmitter as they registered as one with the federal government.

You do realize there is no such thing as a generic "MSB registration" right?  I linked to a screenshot of the form upthread.   The MSB registration requires you to state EXPLICITLY what MSB ACTIVITY (such as money transmitter) you will be engaging in.


You get what you pay for. Free advice on the forums should be taken as just that.

Money transmitter as defined by FinCEN is not the same as money transmitter as define by the state of x. They have different standards. FinCEN only updated their rules in the last 2 years with the "informal value transfer system" bit at the end of 5(A). This was not in my state regulations. But, I don't have an official answer from the state.
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Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 23/10/2012, 18:10:10 UTC
The scenario I described to them on a previous call was starting a business that offered a website accepting credit card payments in exchange for bitcoins. It took about an hour to explain what bitcoins were, why people would be interested in the business, and what bitcoins are used for. I agree that the reply message was vague as to the reasoning, but, I don't really care to challenge their lawyers on the matter. I really just wanted a yes or no answer. And I got it. So, if you are going to sell bitcoins for dollars -- register as a MSB. It's actually not that difficult. Being a money transmitter (different than MSB) is on a state by state basis and it seems to have a large cost of entry.
Post
Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 23/10/2012, 17:25:48 UTC
Quote from: hazek on October 23, 2012, 10:44:02 AM
Quote from: Malophor on October 23, 2012, 08:45:01 AM
I didn't have to insist on anything. They were really professional. The person I was speaking with thought the question was really interesting and importnat to answer correctly. He asked me a lot of questions about who would use bitcoins, why, and what kind of a business model I was considering. I did need to explain how bitcoin was not a ponzi scheme and how that despite the lack intrinsic value people still assign them value.

Well I'm pretty sure you made a fallacious case for bitcoins legally speaking being something they are not and they happily bought it. Thanks for doing all of us this disservice of now having to fight an assumption by a mafia that has no basis in fact. You practically guaranteed that it'll also stay that way since the mere threat of violence under this false assumption will shut down most entrepreneurs who might have thought they needn't worry about regulations.

And if you think I'm being too harsh, you should think again. Legally speaking bitcoins are not defined what they are. Yes we pretend they are a currency and we call it a currency but legally speaking we don't know what they are. They might be speech for all we know, legally speaking. And I'm sorry but this kind of foolishness of asking a mafia for their opinion and then permission just irritates me to no end. If you really want to be some mafia's bitch, fine, be so on your own but don't drag the rest of us down with you.

I had a legitimate concern about a business proposition. I investigated it with the people responsible for enforcement of the law and got the answer. I'm simply sharing that question and answer back here with the community. I am just the messenger here. If you have a problem with that answer you can call FinCEN yourself.
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Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 23/10/2012, 17:22:00 UTC
Here is the transcript:

"Hello this call is for . This is Anthony from FinCEN. I'm getting back to you after a few weeks. I apologize for the delay. I just wanted to make sure I got a proper answer for you. The bottom line answer for the scenario you describe to us you would be a Money Service Business. That is because you would be a money transmitter purchasing a valuable and using it as money and doing it by means of transmission. So, if that is enough I hope that helps you. In any case, feel free to call us back. Have a good day."

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Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 23/10/2012, 08:45:01 UTC
I didn't have to insist on anything. They were really professional. The person I was speaking with thought the question was really interesting and importnat to answer correctly. He asked me a lot of questions about who would use bitcoins, why, and what kind of a business model I was considering. I did need to explain how bitcoin was not a ponzi scheme and how that despite the lack intrinsic value people still assign them value.
Post
Topic
Board Trading Discussion
Re: FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 22/10/2012, 12:04:07 UTC
I have the reply on voicemail. I'll transcribe it here for what the official answer was tomorrow. I also understand that their calls are subject to FOIA requests so I expect this now an official documented reply.
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Topic
Board Trading Discussion
Topic OP
FinCEN says you must be MSB if you sell bitcoins for $
by
Malophor
on 18/10/2012, 18:36:17 UTC
I was looking at starting up a site that would sell bitcoins through credit card transactions as a US based business. Not wanting to run into immediate regulatory problems I gave FinCEN (Financial Crimes Enforcement Network) a call. It took them a couple of weeks to get back to me but the answer was yes that business would be required to register as a Money Service Business.
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Topic
Board Project Development
Re: [Idea] Trade Anonymity for Trust
by
Malophor
on 15/10/2012, 08:01:00 UTC
Identity Escrow -- brilliant! Thanks again.
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Topic
Board Project Development
Re: [Idea] Trade Anonymity for Trust
by
Malophor
on 12/10/2012, 17:34:59 UTC
That's a good point about regulations making in impossible for small business to enter the market.
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Topic
Board Project Development
Re: [Idea] Trade Anonymity for Trust
by
Malophor
on 11/10/2012, 22:59:38 UTC
Thanks for the feedback. I was aware of others doing similar things. It's certainly not a unique approach.
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Topic
Board Project Development
Re: [Idea] Trade Anonymity for Trust
by
Malophor
on 10/10/2012, 18:31:12 UTC
If someone claims to be scammed by a verified address then the victim has a legal recourse to subpoena the account details. The courts decide if there was actually wrong doing. Private account details would never be released without following the law. In the future, disputes over small matters between two verified parties might be able to take place through mediated arbitration outside of the court system.

The security you gain is that if you get scammed by a verified address you have a much better chance of finding the person who scammed you. Thus, people with verified addresses are less likely to scam in the first place. They can be held accountable for their actions. It also saves us from having to send a copy of our ID's and utility bills to 10 different web sites and it saves those sites the trouble of dealing with that information.
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Topic
Board Project Development
Re: Use your BTC for good -- help feed needy people for Thanksgiving
by
Malophor
on 09/10/2012, 18:23:07 UTC
Great idea! Do you need any help other than monetary donations as well?
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Topic
Board Project Development
Topic OP
[Idea] Trade Anonymity for Trust
by
Malophor
on 08/10/2012, 19:59:24 UTC
What do you think about a site allows users to attach identity to a bitcoin address? It allows users to trade anonymity for trust. One could verify different pieces of identity such as email, phone, facebook account, physical address, id, etc... and earn a score for what they verify. The information would be kept secret while the score could be looked up by anyone. A buyer could see that "oh, this btc address has verified their home address with this third party, so I can find out where he or she lives should I get ripped off." Would you use this service to look up btc addresses? Or use it to verify your address if it allowed you access to better rates or trusted merchants? What about if you earned some BTC for each point of identity attached?
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Topic
Board Beginners & Help
Re: bfl is ridiculous
by
Malophor
on 03/10/2012, 23:33:36 UTC
They said all current pre-orders by Christmas... that was a two weeks ago. Makes sense that it would be January now given more pre-orders. It is misleading to place a pre-order on their website when they say they are starting to ship in October. One assumes that their preorder will be shipping in October. It would be really nice if there were a way to dynamically check on order status. Something that could update with an estimated ship date for example.
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Topic
Board Services
Re: LF bash/bourne script programmer.
by
Malophor
on 03/10/2012, 20:54:07 UTC
Just wanted to report back that paperkat DID pay after receiving the final product. Thanks.
Post
Topic
Board Services
Re: GOXKEYGEN - daily free bitcoins
by
Malophor
on 03/10/2012, 20:42:42 UTC
Verified. Added 0.00002829 BTC to MTGox account.