“In the leading opinion, the Supreme Court of the United States, held that the definition of a security includes an investment contract, which is “a contract, transaction, or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or third party…” Designating such instruments as “loans” does not alter their legal status as securities. SEC v. W.J. Howey Co., et. al, 328 U.S. 293, 66 S. Ct.1100, 90 L.Ed. 1244 (1946).”

- Sharon

E-currencies that are precious metals, like e-gold and ebullion, are not considered to be money transmission. Companies that accept US dollars for a product, service or as a loan, are not considered money transmittors.

According to the FinCEN (yet another US alphabet commission), money transmitters fit a specific criteria and G.O.D. doesn’t fit as a money transmitter. Here is their ruling: http://www.msb.gov/pdf/fincenruling2004-1.pdf

JMO,
Sharon

You can send and receive money using e-currencies to your family, friends… but not from people to trade that money. You need to be registered as a financial company. That’s what i have been told. Is is true?

But opening a reliable program it’s easier and faster with e-currencies and setting up a financial company costs a lot of money, that’s why many people try to register a financial company through a foundation in other country: it’s cheaper and you avoid taxes.

What I don’t know is if you advice in your program that you don’t accept money from USA people then you will avoid SEC or not.

If that’s true it can be very dangerous to many reliable programs where we are investing now

Yes, I understand the difference with GOD now, thanks sharon, but I would like to know many more about all of this.

As I understand it, it is not the e-currencies. The SEC has jurisdiction over the selling of securities across state lines. G.O.D. was selling securities and they offered it in all 50 states, as well as globally. They secured the loans with inventory and promised an interest on the loan. Therefore, the loans were secured interest loans, which makes them a security.

As you already know, I’m not a lawyer, so the above is just my interpertation and may not be complete or accurate.

JMO,
Sharon

Because many reliable programs are in that situation. Is there any solution without being registered as a company?

Can someone explain a little more about this?.
Thanks