Claude,
Trust me, Claude, I am with you on this. And yes, I have had a second
AND third opinion on this subject as well as have paid nearly $15 K in the
last three months alone to my attorney's firm for time and research on the
matter. M attorney has been in contact with the Indiana Depart. and US
Depart. of Treasury to clarify this matter for months.
In the USA, (Canada is close, but still separate) according to the State
(Indiana) and Federal Dept. of Treasuries, a business must meet certain
characteristics to be classified FIRST as a Money Services Business (anyone
who deals in money like Gaithmans) but additionally SECOND to be labeled as
a Money Transmitter. (GGN is a Money Services Business but NOT a Money
Transmitter) The Issuers (E-Gold, Ltd., SRHL, E-Bullion, Inc.) fall closer
in line with the Money Transmitter laws since they 1. own and operate the
software which TRANSMITS the monies between accounts and 2. own and operate
(or set up and control) the Trust Funds which house the bullion or value.
The MM's would then be classified as AGENT's of the M.T.'s similar to the
way your local grocer is an AGENT for Western Union but your grocer is NOT a
Money Transmitter himself. He simply accepts the funds, places in an
account for W.U., then calls in the order. W.U. actually transmits the
funds. Similarly, MM's and EA's only BUY and SELL stored value. We do not
transmit the funds. The software maintained and controlled by the Issuers
enables the value to move from account to account. (Wow...I almost sound
like I understand all of this!!) *grin*
You are right, some days I feel like a great big ostrich with my head in
the sand. Ironically, VERY FEW law firms and even FEWER employees of the
Treasury are familiar with Stored Value and Digital Currencies. I am not
saying what is and what is not, Claude, just where MY business stands on the
issue. We also operate within the law and make every effort to stay well
within laws which are proposed, but not yet in effect. (I feel like I have
earned the equivalent of a Bachelors in Business and Finance in 6 months
from all the research I have paid to have done and reviewed myself.) We
even submitted an application to the Federal Department of Treasury's
F.C.E.N. (Financial Crimes Enforcement Network) to be the FIRST Stored Value
Buyer and Seller to register if/when it becomes necessary.
If you provide me with your fax number, I will send you some of the info
I have dug up. You may want to have your attorneys review it, though,
Indiana and US law are different from Canadian law.
We are on the same side, Claude, just looking at the shade of blue in the
sky with slightly different perspectives caused by the difference in our
"viewing" spot. (i.e. Your under Canadian law, GGN is under USA and IN law)
See you in the sand, my friend, got any (what do ostriches eat
anyway??) to spare?
Eric
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