Dutch Puppybreath
Member
Florida resident, but US question:
I've been told that selling Bitcoin without actually owning the asset is illegal in the US. This would be used as a type of escrow - where a client hands money to a broker, the broker then purchases the cryptocurrency on an Exchange, and then transmits the Bitcoin to the client's wallet after the transaction has confirmed. The broker would be registered with FinCEN, and a 100% legal MTB.
The point in question is whether the broker has illegally "sold" something the broker did not possess beforehand.
I can't find any caselaw regarding this, nor any type of US code or direction from the Treasury Department.
Comments? Suggestions? Ideas?
Thanks in advance.
I've been told that selling Bitcoin without actually owning the asset is illegal in the US. This would be used as a type of escrow - where a client hands money to a broker, the broker then purchases the cryptocurrency on an Exchange, and then transmits the Bitcoin to the client's wallet after the transaction has confirmed. The broker would be registered with FinCEN, and a 100% legal MTB.
The point in question is whether the broker has illegally "sold" something the broker did not possess beforehand.
I can't find any caselaw regarding this, nor any type of US code or direction from the Treasury Department.
Comments? Suggestions? Ideas?
Thanks in advance.