The Bitcoin Classic hard fork solution could lead to legal trouble down the line. Or that was the assumption at least, even though no one was able to confirm this statement at that time. An interesting question was raised, though, and the answer will put a lot of people’s mind at ease: the current FinCEN guidelines will not get developers in legal trouble.
Also read: Bitcoin Price Watch; Let’s get some upside! No FinCEN Implications For Bitcoin Developers
Most of this discussion started from the point of view that hard forking Bitcoin would make Bitcoin Classic a separate money services business. After all, the bitcoins mined on that blockchain would be far different from any other bitcoin found on the Bitcoin Core blockchain. But whereas the latter is abiding by FinCEN regulations and guidelines, Bitcoin Classic is not.
As it turns out, there is no reason to worry about FinCEN implications if the Bitcoin Classic hard fork would occur. Some people considered the option of legal consequences for the project developers, all of whom are publicly listed on the website. But as it turns out, there is no reason to worry about any implications just yet.
Based on the information found in the current FinCEN regulation draft – created back in 2013 – there is no need to assume hard forking Bitcoin would make the new solution a money services business. No administrator is overseeing the Bitcoin protocol for FinCEN regulations, which also removes the need for developers to register as a money transmitter.
Up until this point, FinCEN has clearly defined projects related to digital currency and Bitcoin do not fall into the same category as prepaid access sellers or providers. Additionally, digital currency exchanges are not labelled as foreign exchanges either, and there are absolutely no ties with […]
