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READ THE INDICTMENT—–
Digital currency was used for on-line commerce and for funds transfers between individuals for non-commercial purposes.

While technically speaking, the owner of digital currency could have had some right to acquire the actual metal behind the currency, digital currency users typically converted their value into a national currency when they wanted to take value out of the on-line system.

E-GOLD advertised on its website that it is “an alternative Internet payment system” that “empowers people to use gold as money.” E-GOLD advertised its service as “Better Money,” and “Internet Payments 100% backed by Gold.”

Under 18 U.S.C. Section 1960, it is a felony to conduct a money transmitting business without the appropriate state license (in a state that has a licensing requirement and punishes such operation as a misdemeanor or felony) or federal registration,

What it appears they[gov] are going to say is that ‘e-gold claims [gold is money] and [better money] and [Internet Payments] so they recognize gold is money and were in fact transmitting ‘money’ (gold)

Read the indictment closers and you can recognize this direction.

Also by this logic, agents are conducting money transactions (MSB.gov) whether in the US or NON US but transacting with US clients, e-gold exchange agents should soon be required to be MSBs.

With this case, the US gov wipes out DGC use in the US, labels agents as MSBs, DGC issuers as money transmitters and restricts the transactions of DGCs in the US just like Western Union would, SAR, CTRs etc.

Is this bad? Not necessarily, legal and licensed— you may see DGCs being sold by every existing MSB agent in the US. Licensing and regulations paved the way for PayPal’s global domination. If in fact that happens to DGCs, and that is a HUGE ‘if ‘ then DGCs could then also become a household phrase. e-gold is, after all, a much better way to do business online, even Bill Gates recognizes that. Low fees, no chargebacks……
Mark
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Nostradumbass
May 15, 2007 at 9:53 pm

How Terrorists Send Money

[Yet another example of how powerful interests are able to openly operate financial networks with demonstrated appeal to the villains major governments profess to target, but a small operator like E-gold, with little if any similar demonstrated societal risk, is indicted.]

Terrorism Dr. Rachel Ehrenfeld & John Wood

May 3, 2007

Advanced mobile technology, cooperation between international mobile
communications providers and international financial institutions and the
lack of regulations make for a swift, cheap, mostly untraceable money
transfer — known as “m-payments” — anywhere, anytime, by anyone with a
mobile telephone.

….

The only applicable federal reporting requirement to providers of stored
value cards is the Currency Transaction Report rule. A CTR must be filed
for all cash transactions greater than $10,000 per day. However, the CTR
can be filed up to 15 days after the transaction has occurred, giving
terrorists and criminals enough time to disappear.

Furthermore, although almost all U.S. m-payment service providers are
registered as Money Services Businesses with FinCEN, the regulations do not
have specific provisions pertaining to them. Moreover, the government is
already constrained by international privacy and secrecy laws, as in the
Cayman Islands, Cyprus, Belgium and Panama.