W3C home > Mailing lists > Public > public-interledger@w3.org > November 2016

Re: Regulatory Considerations running an ILP node (Re: [Ledger] Bootstrapping Interledger)

From: Andrew Bransford Brown <andrewbb@gmail.com>
Date: Wed, 9 Nov 2016 16:39:11 -0500
Message-ID: <CAPS+YFJk0Naz9xgPfGNBTRNH5UyeENStc3LkQLcazUuWwqMTXg@mail.gmail.com>
To: Adrian Hope-Bailie <adrian@hopebailie.com>
Cc: Tony Arcieri <bascule@gmail.com>, Tom Haas <tjhaas@gmail.com>, Interledger Community Group <public-interledger@w3.org>, Interledger Mailing List - IETF <ledger@ietf.org>
My suggestion is that if you start getting into "credit units" of some
kind, you're on the wrong track.  I say this from an accounting and trading

The value being traded exists somewhere at all times and its location and
owner must be known at every step in the transaction.

Andrew B. Brown
(512) 947-8282

On Wed, Nov 9, 2016 at 4:00 PM, Adrian Hope-Bailie <adrian@hopebailie.com>

> As I mention in the wiki, the goal is to test the capabilities of the
> protocol by bootstrapping a real network of ILP nodes (not create an
> unregulated payment network).
> I think it's important for this to be a network moving real value
> otherwise it's difficult to motivate people testing things built on top of
> the protocol to even consider ILP. We're only going to test this properly
> when there is some skin in the game, we just need to make sure nobody
> stands to lose more than they can afford to risk.
> As I have also said in the wiki, we have the advantage of a number highly
> valued crypto-currencies that offer us "permission-less innovation" and the
> opportunity to move real value without (in most cases) breaking any laws.
> If your particular situation prohibits you from running an ILP node for
> fiat currencies but you can transmit and exchange crypto legally then
> that's the way you can move real value.
> Obviously, every person that chooses to run an ILP node should evaluate
> their own situation and not do anything illegal. For some, that might mean
> sticking to fake money initially or developing a community currency system
> between small groups of peers.
> Most importantly though, we should continue to only move small amounts
> both because we don't want anyone to risk more than they can afford to lose
> in helping to bootstrap this project (which is still under heavy
> development) but also because we don't want to raise the ire of regulators
> when our immediate goal is to test the protocol not become an unregulated
> payment network.
> Finally, and this may be obvious, but I want to be clear, that by running
> a node and exchanging real value using this immature protocol, you are
> taking a risk. I (and I think I speak for everyone else involved in the
> project) take no responsibility for any losses anyone incurs, whether
> direct or indirect, in being a part of this. We are being pioneers and
> there are risks.
> Be responsible, only exchange small amounts and make sure you understand
> the applicable regulations for your specific case before you proceed.
> On 9 November 2016 at 21:59, Tony Arcieri <bascule@gmail.com> wrote:
>> On Wed, Nov 9, 2016 at 11:42 AM, Andrew Bransford Brown <
>> andrewbb@gmail.com> wrote:
>>> I'd suggest a State exchange to avoid SEC regulations while building the
>>> market.  Once you cross state lines, then pass the SEC regs.
>> It's a little more complicated than that. Individual states within the US
>> have their own money transmitter laws, which often apply to money transfers
>> within the state in addition to transfers between states or countries.
>> Setting up a test network with a fake currency that has no actual value
>> sounds ok, but if you are moving real money, even within a single state
>> (state laws providing), you'll want to have a money transmitter license
>> before you do so. For transmitting money between states, you'll need
>> licenses for every state you plan on operating in.
>> --
>> Tony Arcieri
>> _______________________________________________
>> Ledger mailing list
>> Ledger@ietf.org
>> https://www.ietf.org/mailman/listinfo/ledger
Received on Wednesday, 9 November 2016 21:39:44 UTC

This archive was generated by hypermail 2.3.1 : Wednesday, 9 November 2016 21:39:44 UTC