Replies to post #62278 on Bots Inc (BTZI)

[pitadog]

I don't see that plan ever working. First of all, is appears to be a type of laundering via currency, but mostly, banks and companies that process credit cards seem to be implicated in a money changing scheme that violates federal law.

Banks don't get involved with drug financing by fed law. Obama told the country they would, via policy, look the other way if the ba ks provide their services. Banks didn't buy it, at it is just an admin. creating policy (over riding fed. law) and subject to change with the next admin. of the USA.

What they plan to do is this, imo:

Customer goes into a pot shop and buys the product. The merchant uses the internet to place an order for bitcoms (purchase was for pot).

The processor of the card, mjbitcoin's source, converts the credit card in US dollars to bitcoin and bitcoin are sent to the merchant.

Smells pretty badly to me. jmho

Paul certainly has shown he IS a money changer.

[lesgetrich]

Normally, a merchant would contract with a credit card company to sell their products giving the card carrier a percentage of the sales price. Credit card companies will not sell their services to MMJ or RMJ companies because MJ is still illegal under federal law. This doesn't apply to mCig because mCig doesn't sell MJ, only legal products and services. Consequently, to sell online or in store via credit card (or ATM for that matter) is not a viable option for these companies unless they can find a way to circumvent this issue.

I suspect that for a company to say explicitly that they are doing this might open them up to charges that they were money laundering. However, this is a potential problem for anything that an MMJ or RMJ company does with their cash since they have difficulty opening US bank accounts for the same reasons. Consequently, virtually all of their business has to be done on a cash basis leading to a ton of security concerns which mCig can address with their Security Grade acquisition.

The question that I'm not clear about is whether there are any US banks that will allow an MMJ or RMJ company to open an account and risk running afoul of the Feds. Perhaps one way arround this is to open an account with a foreign bank.