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0 sats \ 2 replies \ @k00b 9 Jan \ parent \ on: Cowboy Credits - Quick Summary (my attempt) meta
It's noncustodial and works like every lightning routing node works. So if SN is a money transmitter for doing this, so is every routing node on the lightning network.
re: works like every lightning routing node works
We pay the receiver with OUR own money and only after the receiver has OUR money can we claim the sender's money. We don't take custody of the sender's money to give to the receiver which is how money transmission has been more formally defined in prior cases.
Basically, we are involved in the "direct" transfer but it's noncustodial.
So if SN is a money transmitter for doing this, so is every routing node on the lightning network.
So what is wrong with being a money transmitter? I don't understand why all this hassle just because some users are keeping a bunch of sats in a SN account. Lower the account limit and done, keep it simple.
Nobody cares about "money transmitting" bullshit.
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All the old on-chain bitcoin tipping services were sent cease and desist letters, or something like it, for money transmission because they were custodial. That's why custodial/noncustodial makes a difference - no noncustodial service has been charged with unlicensed money transmission to date.
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