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Discussion => Off topic => Topic started by: Jack N Hoff on June 04, 2013, 07:23 am

Title: You need a million dollars to start a 50 state legal money service business.
Post by: Jack N Hoff on June 04, 2013, 07:23 am
Quote
I moderated the regulatory panel at Bitcoin 2013. The legal compliance estimate for operating in all US states is around $1M.

IANAL

The federal MSB registration is fairly straight forward and could probably done by yourself for free if you're on a budget. But that is just a tiny part of the regulatory compliance. You need to create a AML rulebook that can be shown on demand as well as keeping better records and reporting large and suspicious transactions.

The bond for each state does not have to be in cash. I forget the exact term, but there is an insurance like product that you buy similar to a bail bond company. The cost for this is minimal, but still a problem if you need it for all states. A company that does this was actually one of the exhibitors I believe at Bitcoin 2013.
Title: Re: You need $25,500,000 dollars to start a 50 state legal money service business.
Post by: ShamelessHarvey on June 04, 2013, 08:01 am
Gotta keep that bar high. Wouldn't want any of the common folk to get the idea they could be rich too.
Title: Re: You need $25,500,000 dollars to start a 50 state legal money service business.
Post by: modziw on June 04, 2013, 08:24 am
Dude, check your data.

False info galore.

What does it cost to get a bond again?

Since when do I register a business in another state when I am not located in that state?

Modzi
Title: Re: You need $25,500,000 dollars to start a 50 state legal money service business.
Post by: Jack N Hoff on June 04, 2013, 02:45 pm
Dude, check your data.

False info galore.

What does it cost to get a bond again?

Since when do I register a business in another state when I am not located in that state?

Modzi

Sorry, You need about a million dollars to start a 50 state legal bitcoin based money service business in the US.  I got the other information from an unreliable source.
Title: Re: You need a million dollars to start a 50 state legal money service business.
Post by: ShamelessHarvey on June 04, 2013, 02:51 pm
Quote
I moderated the regulatory panel at Bitcoin 2013
It's cool to know Pelle hangs out in the seedier parts of the Bitcoin economy.
Title: Re: You need a million dollars to start a 50 state legal money service business.
Post by: QuarterBaked on June 04, 2013, 05:30 pm
I did think $25.5 million sounded like a ridiculously high sum even for the US. $1 million sounds more correct and affordable. Still pricey, but if you're gonna be a multi-state company you should be able to afford that much via investors and stuff.