It seems that participating in the bitcoin economy, using bitcoins to procure goods and services, as well as accepting bitcoins for providing goods and services is okay, but a service for allowing conversion of bitcoins to USD will require a license (Is that true for every other currency?).
If I read it right, it makes sense. If not, please correct me, in addition to the downvote.
That's mostly right to my reading, but FinCEN letters are not laws. They're clarifications about regulations published in the Federal Register which are themselves clarifications about laws.
FinCEN has published other letters that distinguish between money transmitters and "payment processors," the latter being companies that work exclusively on behalf of merchants to facilitate payments. Even though this interpretive ruling has the effect of a federal regulation, state agencies such as the California DFI choose to actively ignore these rulings and make up their own.
So, what is California's interpretation? We don't know, because as Commissioner Barnes pointed out last Monday, the DFI hasn't issued any of its own interpretive rulings about the Money Transmission Act, ever, and before it does--even though it plans to--the legislature will likely amend the law, which means they'll delay some more.
Now multiply this mess by 47. That's how clear it is.
If you really want the details, my comment letter to the legislature is a good place to look.
That is correct, and even if you are a bitcoin miner and you only use the coins you mine to procure goods you aren't subject. However if you are an exchange, or it would seem an escrow agent see this:
"In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."
Which would cover a service where, for a small fee, you accept bitcoins from party A, wait for you to acknowledge a transaction in some way, and then release those bitcoins to party B. As I understand what is written this would apply to Silkroad itself, but not the buyers or sellers on silk road.
It is entirely unclear to me if you are regulated if you trade bitcoins for Laundry Detergent and buy laundry detergent from others for Bitcoins. (see previous discussion of how Tide became a currency for drug dealers)
If I read it right, it makes sense. If not, please correct me, in addition to the downvote.