Re:No Bitcoin-based protocol can handle more than 20M users ...
by JumpCrisscross on Sunday October 08, 2017 @02:18PM
(#15429266)
> Laws would probably have to be re-written to categorize them as a money transmitter, because there is no fiduciary duty for the Lightning Network Node
American law draws two circles. One is for entities with know your customer (KYC) requirements. The other is for entities with a fiduciary duty to their clients. The second circle is inside the first. Lots of entities with no client fiduciary requirements are required to know their customers.
TL; DR If you’re handling others’ money, or helping others transmit money, directly or indirectly, you have a KYC liability under current law.
Disclaimer: I am not a lawyer. This is not legal advice.
American law draws two circles. One is for entities with know your customer (KYC) requirements. The other is for entities with a fiduciary duty to their clients. The second circle is inside the first. Lots of entities with no client fiduciary requirements are required to know their customers.
TL; DR If you’re handling others’ money, or helping others transmit money, directly or indirectly, you have a KYC liability under current law.
Disclaimer: I am not a lawyer. This is not legal advice.