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In 2013, the Department of Treasury and The Financial Crimes Enforcement Network (FinCEN) fined Ripple for not registering as a Money Services Business for selling the virtual currency XRP, and forced them to register:
Under federal law, each money services business (MSB) is a business doing one of the following:
Under federal law, each money services business (MSB) is also considered a financial institution:
Next, a filing on the same violation from the Department of Justice specifically identifies xrp as a virtual currency: https://www.justice.gov/usao-ndca/file/765721/download
And what is a virtual currency, specifically defined by the IRS?:
So, we now know that, under order of the federal government, Ripple Labs is a financial institution that facilitates the exchange of virtual currency.
Under nowhere in the violation, does it enforce Ripple Labs to register as an (h) Broker or dealer in securities, required to be registered with the Securities and Exchange Commission under the Securities Exchange Act.
It does, however, require Ripple Labs (& associate XRP II), to register as an (ff) Money services business: (1) Dealer in foreign exchange.
But if that’s not enough confirmation for you, Ripple has also been legally sworn in federal court, and through the department of justice, under direct requirement from the US Treasury, as a currency exchange service, based on its selling and transmission of virtual currency XRP:
Sure, this was 7 years ago, but audits for this violation, under direction from the DOJ, are set to occur through 2020. Ripple Labs does not sell securities. Ripple Labs is a financial institution with the current legal authority to sell and exchange its virtual currency, xrp.
and lastly..
"The fintech charter is based on the idea that banks took deposits, made loans & were involved in payments, but some institutions might provide only one or two of these services." These institutions can still be treated as banks per the OCC. https://www.coindesk.com/us-banking-regulator-suggests-federal-licensing-framework-for-crypto-firms
"The fintech charter is based on the idea that banks took deposits, made loans & were involved in payments, but some institutions might provide only one or two of these services." These institutions can still be treated as banks per the OCC. https://www.coindesk.com/us-banking-regulator-suggests-federal-licensing-framework-for-crypto-firms
Clarity will come through OCC and @BrianBrooksOCC. This news today was to get Ripple and XRP at the center of the stage. Ripple is trending in the U.S. All EYES on U.S.
The show is about to begin
The show is about to begin
Warm up the engines. Load up the Suits. M O O N T I M E
