Are identifiable cryptocurrency miners helping crime? Say there is a cryptocurrency whose issuers use electronic signatures issued by the government to prevent Sybil attacks (identity forging) to the voting mechanism when new currency units are created. The identity of currency issuers is pseudonymous to the general public but the issuers can be exactly identified by the government. Lets assume the cryptocurrency is reliable and gets widely adopted among the public. After some time someone commits a crime using the cryptocurrency as a medium (maybe to pay for a murder etc.). Can the original currency issuers be judged for accessory (helping to commit crime) since they were the origin of the money? There may be many transactions from money creation to the final criminal. The transactions may either be pseudonymous (=traceable, like bitcoin) or fully anonymous. The type of transactions may be set before the cryptocurrency is created.
Here are the suggested federal jury instructions for aiding and abetting: To "aid and abet" means intentionally to help someone else commit a crime. To establish aiding and abetting, the government must prove beyond a reasonable doubt: First, that someone else committed the charged crime; and Second, that [defendant] consciously shared the other person's knowledge of the underlying criminal act, intended to help [him/her], and [willfully] took part in the endeavor, seeking to make it succeed. [Defendant] need not perform the underlying criminal act, be present when it is performed, or be aware of the details of its execution to be guilty of aiding and abetting. But a general suspicion that an unlawful act may occur or that something criminal is happening is not enough. Mere presence at the scene of a crime and knowledge that a crime is being committed are also not sufficient to establish aiding and abetting. [An act is done "willfully" if done voluntarily and intentionally with the intent that something the law forbids be done - that is to say with bad purpose, either to disobey or disregard the law.] Based on this, I would say a miner would not be guilty. They would have no more than a "general suspicion that an unlawful act may occur" at most, and that's not enough.
The answer is more law than it is computer science. You can't tell if a Ponzi scheme is a Ponzi scheme by looking only at individual transactions in the scheme. The individual transactions involve buying something, selling it, entering into loan or investment contracts, and the like. What makes a Ponzi scheme a Ponzi scheme is that the promoters make their money primarily from the investors and individuals acting as sub-promoters in the scheme and not from end users of whatever is being nominally promoted by the Ponzi scheme. Only by analyzing the finances of a purported Ponzi scheme can you determine that it is indeed one. The individual transaction documents and transactions can be facially legal, but still be an illegal Ponzi scheme if the economics of the scheme as a whole are illegal. (Similarly, it is impossible to tell if an anti-trust violation is illegal simply by looking an individual transactions carried out in furtherance of the anti-trust violation. You can't tell if goods are being sold below cost to damage competition, for example, just from a single sale of goods transaction in isolation.) In contrast, many of the transaction at Silkroad were illegal in isolation - buying or selling controlled substances or child pornography or whatever else was forbidden to sell to the counterparty in the transaction. If you can just look at a single transaction and determine that it violates the law, it is much easier to develop the probable cause needed to do a fuller investigation or to make arrests.
No. You have to pay taxes no matter what currency you are paid in, or for that matter, in most barter transaction as well. You would have to pay taxes even if you were paid in goats. Also, the counter-parties in transactions in which you are paid in Bitcoin and earn money often have an obligation to file information tax returns to the IRS. If you don't report the income, both you and any counter-party subject to reporting requirements could be liable for the tax as well as for penalties and interest and possible criminal charges as well for intentionally evading taxation and filing false tax returns.
Are there such restriction for F-1 students who have been in the US for less than 5 years, who are non-resident aliens for tax purposes and are actually not citizens of the US but are citizens of another country? Short Answer For the most part, citizenship and immigration status are legally irrelevant to your eligibility to participate in an ICO (there are isolated exceptions related to international trade sanctions, and there are certain "sensitive" industries that usually wouldn't apply to an ICO). This said, no issuer of coins is required to make the offering available to everyone who is not prohibited by the applicable laws from participating. For example, if someone wants to make an ICO available to anyone but Canadians, that is their prerogative. But, in practice, most private ICOs require investors to be accredited investors, and few students on F-1 visas have the wealth, income or professional qualifications necessary to be accredited investors. Long Answer In an ICO made in the United States, the issuer (i.e. the person creating the coins) and the underwriter (i.e. the professionals retained to handle the ICO for the issuer, which will sometimes be the same person as the issuer) are electing to treat the coins as "securities" for the purposes of U.S. law which means that they can be issued only as a "public offering" upon registration with the SEC under the '33 Act or the '34 Act, or under an exception to those acts. While the statutes enumerate exceptions to the Acts, almost everyone sticks to trying to comply with one of the safe harbor exceptions created by SEC Regulation D. This protects the issuer and underwriter from legal liability for making an unregistered offering of a security that does not fall within an exception to the registration requirement, even though it is not unambiguously clear that cyptocurrency coins are "securities." They do this because the consequence for being wrong on this legal question of first impression are very severe and could lead to civil liability for all losses that coin holders experience, large civil penalties that cannot be discharged in bankruptcy, and criminal convictions. Eligibility to participate in a private offering made pursuant to the Regulation D exceptions to U.S. Securities laws (mostly the '33 Act and '34 Act) governing public offerings of securities that often require someone to be an "accredited investor" does not depend upon the immigration status or citizenship of the investor. A private ICO would ordinarily be made under a Regulation D exception. There are two Regulation D exceptions (one for offerings of less than $1,000,000 in the aggregate by an issuer, and another for intrastate offerings) which do not require you to be an accredited investor and there are other exceptions with allow a small number of non-accredited investors to participate if they are provided a professional advisor to counsel them in evaluating the offer. The most popular Regulation D exceptions for private offerings, however, are limited to accredited investors, which are available without regard to citizenship. A non-citizen could probably not participate in an offering made pursuant to the intrastate exemption, but this exception is quite unpopular for issuers and underwriters because very few offerings qualify under it and the boundaries for qualification are not well defined. I could imagine an ICO being made under this exception but I am not aware of any that actually are be made in that manner. Generally, to be an accredited investor you must be a certain kind of business entity (e.g. a bank), or a member of a certain set of professions (e.g. lawyers and brokers), or have a certain net worth and/or income. To be an accredited investor, a person must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income. An individual must have earned income above the thresholds either alone or with a spouse over the last three years. The income test cannot be satisfied by showing one year of an individual's income and the next two years of joint income with a spouse. The exception to this rule is when a person is married within the period of conducting a test. A person is also considered an accredited investor if he has a net worth exceeding $1 million, either individually or jointly with his spouse. The SEC also considers a person to be an accredited investor if he is a general partner, executive officer, director or a related combination thereof for the issuer of unregistered securities. An entity is an accredited investor if it is a private business development company or an organization with assets exceeding $5 million. An organization cannot be formed with a sole purpose of purchasing specific securities. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor. In 2016, the U.S. Congress modified the definition of an accredited investor to include registered brokers and investment advisors. Also, if a person can demonstrate sufficient education or job experience showing his professional knowledge of unregistered securities, he is also considered an accredited investor. In contrast, in the case of a public offering, which must be registered with the SEC under the '33 Act or '34 Act, any adult of any nationality (except as noted below) can participate without being an accredited investor. Still, in general, a U.S. securities law perspective, an investor from the U.K. or France or South Africa is the same as a U.S. citizen, even though the tax treatment of the investment for a non-citizen is very different from the tax treatment of the investment for a U.S. citizen or permanent resident. The primary exception to this general rule is that there are some people in some countries who are prohibited from investing in U.S. securities as a consequence of international trade sanctions. These would include members of the families of certain government officials in Russia, Syria and Venezuela, for example. Usually, a private offering packet provided to potential investors (such as one I wrote a couple of months ago involving international investors as well as U.S. investors) will include a separate form in which potential investors certify to the issuer and underwriter of the offering that they are not prohibited from investing under these laws which are enumerated in the form. Non-citizens who are not resident aliens (i.e. who are not green card holders), are also usually required to make a disclosure related to income tax compliance that is different than the Form W-9 that has to be provided by U.S. citizens and green card holders. There are also certain industries (e.g. equity investments in Colorado legal marijuana dispensaries, or farms in some Great Plains states) in which non-resident non-citizens are simply prohibited from making investments entirely although there are no ICOs of which I am aware that would fit in that category.
It's illegal under US law. 18 U.S. Code § 478 says: Whoever, within the United States, with intent to defraud, falsely makes, alters, forges, or counterfeits any bond, certificate, obligation, or other security of any foreign government, purporting to be or in imitation of any such security issued under the authority of such foreign government, or any treasury note, bill, or promise to pay, lawfully issued by such foreign government and intended to circulate as money, shall be fined under this title or imprisoned not more than 20 years, or both. There are several similar laws for similar crimes: § 479 - Uttering counterfeit foreign obligations or securities § 480 - Possessing counterfeit foreign obligations or securities § 481 - Plates, stones, or analog, digital, or electronic images for counterfeiting foreign obligations or securities § 482 - Foreign bank notes § 483 - Uttering counterfeit foreign bank notes § 488 - Making or possessing counterfeit dies for foreign coins § 502 - Postage and revenue stamps of foreign governments According to version of the South Sudan penal code I was able to find, counterfeiting is illegal. But if I understand section 7 correctly (which I might not), most counterfeiting is not prosecutable under South Sudan law if it is not done in South Sudan. Having a counterfeit revenue stamp, however, would be, as would fraudulently altering a coin. Given that there's not an extradition treaty and that it's already illegal under US law, this probably doesn't matter much, though
Some jurisdictions have laws which make it illegal to create a software which is intended to commit crimes (usually computer-related crimes). For example, the German criminal law §202c StGB makes it illegal to create (or sell, convey, etc.) a program which has the purpose to commit crimes against the previous paragraphs 202a (stealing data) or 202b (intercepting data). The constitutional court later clarified that this law is only to be used against programs which serve no other purpose than to commit crimes and not against &quot;dual use&quot; tools which can also be used for legitimate purposes. So if one were accused of committing the crime of creating such a program, then a possible defense strategy could be to convince the court that they never intended for their program to be used to commit crimes.
A public key is private data - the fact that its a public key is neither here nor there, its data owned by the user and not necessarily in the public domain (I have keypairs for which the public key is only known by myself, for example). For a subject access request, you must give the user all data you hold about them, subject to certain restrictions laid out in the GDPR - in your case, this would be the IP addresses, public keys, encrypted data and anything else involved in identifying their devices for transferring the files. You dont need to decrypt the encrypted data if that is something you cannot do or would not normally do in the course of holding it during a transfer - to you, the encrypted data is what you hold. If you hold the means to decrypt the data, that means (private key for example) would also be included in the subject access requests response, but in your case you say you dont hold that, so there you go. Remember to include information from things like logs etc in your response.
Obviously, it's not simply illegal to have a business that exchanges currency - legal currency exchanges do exist, after all. But you'd have to be careful if you wanted to open a business that does this. According to 31 CFR 1010.100, you are considered a "dealer in foreign exchange", and thus a "money services business", and thus a "financial institution", if you are: A person that accepts the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more countries in exchange for the currency, or other monetary instruments, funds, or other instruments denominated in the currency, of one or more other countries in an amount greater than $1,000 for any other person on any day in one or more transactions, whether or not for same-day delivery. You are not considered a "money services business" if you do this "on an infrequent basis and not for gain or profit", but you say you want to "open a business" that does this, so this exemption wouldn't apply to you. If you are considered a financial institution, then you must comply with all sorts of anti-money-laundering regulations, including, for example, verifying the identity of your customers, and filing reports with the US Treasury. You would definitely want to hire a lawyer to guide you through the requirements.