According to the U.S. Department of Treasury FinCen: Money Service Business Definition. The term "money services business" includes;
any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the following capacities:
- Currency dealer or exchanger.
- Check casher.
- Issuer of traveler's checks, money orders or stored value.
- Seller or redeemer of traveler's checks, money orders or stored value.
- Money transmitter.
- U.S. Postal Service.
For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.
The way I understand this is, You don't fall under any capacities as a "Money Service Business" if;
- Cryptocurrency is to be treated as property, NOT CURRENCY OR MONEY.
- Don't allow exchanging from cryptocurrency to fiat.
- Don't allow exchanging from fiat to cryptocurrency.
- Only allow Cryptocurrency-to-Cryptocurrency exchanges.
Is this correct?
If not, please explain why using the previously mentioned guidelines/documents or any other document or statement issued in an official capacity by a U.S. agency stating why this is incorrect.