Hey gang, been out for a while. Started researching again last night and ran across LN KYC question. I am curious what you guys think. Are LN node operators money transmitters required to have KYC/AML procedures? I am not asking if they can be operated without, or whether it can be stopped, but will they be required legally. I know the future cannot be predicted. I have been searching for hours and don't see enough discussion on the topic. Seems to be a major potential problem.
@KingWm I'd start with the existing opinions/rulings of regulatory agencies in the jurisdiction you're concerned with.
My understanding in the US is its viewed as a commodity not a security. As always, do your own research, etc..
@TallTim I think the question is whether "money" (or its equivalent) is being transmitted, not the nature of the "money" itself. I am just surprised that I am not finding more discussion on the matter. Most discussion is on BTC itself. I don't see much BTC adoption without LN, so I am disappointed that question is not being addresses or at least discussed yet.
@KingWm Lightning transmits BTC, so any question you'll have is grounded in how BTC is handled on the regulatory front. Not sure what you're looking for other than that.
@TallTim I am not sure either. Absolute certainty before I spend all this BTC on hardware would be nice 😜
@TallTim Just saw this posted on Twitter by Antonopolous
@KingWm Okay, a self-authored piece by Peter Valkenburgh is nice and all, but unless there's actual laws derived from it -- it doesn't really add up to anything, does it?
@TallTim It gives me ammunition, clues, ideas and likely references. I haven't read it all yet. It will help me understand what the "legal industry" is thinking so I can sort of predict what their arguments are going to be. I have spent much time in the past researching legal matters in the laws and court cases themselves. Sometimes, that research starts with stuff I find on the internet.
@TallTim Perhaps I could just do what everyone else is doing 😜
@KingWm Do what you do, hope it works out.
@TallTim [from that paper] Several activities, when performed using cryptocurrencies or smart
contracts, are certainly regulated ( e.g. accepting and transmitting cryptocurrency on behalf of
others,213 issuing new cryptocurrencies in a public sale with promises of future efforts to create
profits,214 trading cryptocurrency derivatives such as swaps or futures215) and several activities
are simply illegal... Looks to me like, in the opinion of that author, LN is subject to regulation...
@TallTim or at least the routing of funds through the network for others...
@KingWm Researching prior to a business venture is always time consuming if done right. If it was easy, everyone would do it.
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