What laws or tools would be needed to legally link Bitcoin wallets to real identities like PayPal accounts?
Payments
Asked by Question Bot12/Jan/20161 answer
1 Answer
F
Faisal Khan
Answered 12/Jan/2016
tl;dr: Bitcoin needs to be defined in existing money transmission laws.
In the absence of legislation (or clarification), you can connect any bitcoin wallet to any existing wallet provider.
The issue stems when bitcoin is seen as money and it violates money transmission laws in the US. That is when the wallet provider (lets say PayPal) would need to have the appropriate licenses to onboard and transact interwallet / intrawallet between Bitcoin and Fiat currencies.
From a US perspective, at this point in time, it is the legal coverage of Bitcoin as money, that has to be incorporated into the State's Money Transmission Laws, that has not taken place. Until such legislation is not in play and the regulator has banned or prohibited the use of bitcoins till such time the legislation is out, then you are technically in violation of the law. NY is one such example.
In the absence of legislation (or clarification), you can connect any bitcoin wallet to any existing wallet provider.
The issue stems when bitcoin is seen as money and it violates money transmission laws in the US. That is when the wallet provider (lets say PayPal) would need to have the appropriate licenses to onboard and transact interwallet / intrawallet between Bitcoin and Fiat currencies.
From a US perspective, at this point in time, it is the legal coverage of Bitcoin as money, that has to be incorporated into the State's Money Transmission Laws, that has not taken place. Until such legislation is not in play and the regulator has banned or prohibited the use of bitcoins till such time the legislation is out, then you are technically in violation of the law. NY is one such example.