My last article concerning the new legislation from the United States’ finCEN law on Money Service Businesses created a tsunami among the whole HYIP community. Just look in forums! It really came out from nowhere. Taking all this into consideration, should you empty all your AlertPay and Liberty Reserve accounts? Is there money laundering in the industry? If you want to save time, you should definitively take five minutes to read this summary I prepared for you. Enjoy your subscription to my blog, it’s free!
I worked several hours to read tons of documents , to contact the main parties, businesses and information sources. Guess what? I’m not done yet. You’ll get an updated article next week with official replies from finCEN, Liberty Reserve, AlertPay and some of the biggest e-currency exchangers.
First, we’re not talking about the HYIP industry here, even if it’s directly related. Of course HYIPs /Ponzi scams are illegal, that’s not new. People chose to risk their money in HYIPs on their own will. I hope my blog is opening your eyes on so many lies.
So what’s really going on ?As of today March 31st 2012, all Money Service Businesses ( MSB ) operating in the United States but not registered with the Financial Crime Enforcement Network ( FinCEN ) will not be allowed to service US residents ( citizen or not ). Their business will become illegal in the eyes of the government. This new legislation also applies to foreign businesses , not located in the US but doing business in the US.
Keep your calm, there’s no need to panic. Personally, this information is arising some healthy concerns and questions for the future. What’s going to happen and how things will evolve? I’m curious but can’t predict the future 100% accurately. Right now, I really find important you know at least the most critical parts .
For example, if a US resident wants to buy / sell Liberty Reserve , his chosen e-currency exchanger will have to register its business with the FinCEN. More than that, the e-currency itself should be registered too. According to various sources and to some of my own investigation, the very popular AlertPay, Liberty Reserve, Perfect Money , etc never even considered to comply with the US FinCEN. Still waiting for confirmations…
LR chat never heard about FinCEN and so now I’m trying to reach the administration. AlertPay still haven’t replied to my e-mail . Today, I sent a mail to a FinCEN official who I was confirmed answers public questions. So nect week we’ll confirm if AlertPay and LR are registered or not. Do you have any hope?
When it comes to e-currency exchangers processing transactions in the US, they’ll need to become a registered MSB or stop their US activity in the US. You can confirm that swapgold.com denies any US transactions since March 19th. I was told that the popular webmoney.com is blocking american customers from accessing their website ( please confirm that they are blocking IP addresses from the USA ). Goldmoney.com also took some actions. You see that this new legislation affects a lot more industries than just the online HYIP market.The precious metal industry is widely affected.
Several MSBs will simply leave their US customers alone. Thousands of MSBs don’t want to comply. But what’s an MSB according to the FinCEN ? See this link , paragraphs (ff) (1) to(ff)(7) http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=d5570d7646c5fc13fe1fa42a61d1dcf1&rgn=div5&view=text&node=31:188.8.131.52.2&idno=31#31:184.108.40.206.220.127.116.11
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 .
In other words, AlertPay , Liberty Reserve and your favorite e-currency exchanger are all MSBs . Like you can imagine, it’s unlikely they are not registered with FinCEN today and so, are acting against the US law.
It’s not a big deal if you live anywhere else on the planet, provided the MSB processing your transactions is not US based and that can stay in business without the US market. Like you can imagine, all these losses in US customers will result in big losses in revenues for your e-currency exchanger. But will US residents have the intention to stop buying/ selling Liberty Reserve and AlertPay? You tell me! By the way, I could be wrong, but you shouldn’t be worried by charges against you as an individual buying /selling e-currencies . Exchangers and e-currency themselves are the target.
Thanks for your anonymous participation.
- Civil and criminal penalties
The government takes money laundering and illegal money activities seriously. The USA apparently wants to kill the big players : the digital currency providers and exchangers, like said earlier. These just can’t or don’t want to handle the paper-work. Again, I might be wrong but it’s going to take a lot of time before the FinCEN can prosecute all the e-currency exchangers who will continue to serve US residents with Liberty Reserve, for example.
In short, people will just continue to buy/sell their favorite e-currencies as long as the USA won’t put actions on their words and file lawsuits against the offenders. Or maybe the illegal MSBs ( from the US FinCEN perspective ) will get out from the United States by themselves? Let’s keep in touch and see what happens…
Stay tuned for my next article where you’ll be able to ask your questions to Uinvest. And next week for my FinCEN update. By the way I now have 2240$ working for me at Uinvest ; I bought 4 chemical plant shares today.
Sources supporting the information in the above article:
- Official webinar that might interest you .
- Announcement :
- Detailed definitions , scroll down to section ( ff ) :