Non custodial wallet and unlicensed money service business

[mraleph]

Does non custodial wallet that is pre-installed or installed thru our store on an AOSP derivative O/S used by niche clients is against AML regulations?

Asking because we got three conflicting legal opinions from heavy weights and in relation to Samurai wallet - unlicensed money service business

https://bitcoinmagazine.com/legal/samourai-wallet-breaking-down-dangerous-precedents
Please elaborate and if possible, link legal and regulatory documentation. Thank you.

 

[Simon4466]

Sorry I dont think I fully understand, do you process your own payments (i.e. your own webshop with btcpayserver) or do you process payments for clients' websites?

 

[mraleph]

Sorry I dont think I fully understand, do you process your own payments (i.e. your own webshop with btcpayserver) or do you process payments for clients' websites?

No payment processing for services affiliated with our business or any third party's is planned. The lawyers are proposing not to include non custodial wallet due to the risk of unlicensed money service business and EU regulations.

 

[0xDEADBEEF]

I don't think it will be an issue if:

1. You are able to revoke the app from your repository and it does NOT come preinstalled.
2. You are selective about your customer base and do your due diligence.
3. You are not the developer or a contributor. Which means you 'copy & paste' the app from the source.

 

[mraleph]

I don't think it will be an issue if:

1. You are able to revoke the app from your repository and it does NOT come preinstalled.
2. You are selective about your customer base and do your due diligence.
3. You are not the developer or a contributor. Which means you 'copy & paste' the app from the source.

Installment from repository - store application is contemplated; hence,it can always be revoked. Offline device management controller application exist - without MDM functions, so it can't be uninstalled from any end user device. Design choice - no remote management by default.
We are OEM, without attachment to wholesale and retail - completely isolated in legal and organizational context. Commercial and technical end user management is performed by authorized distributors and their contractual partners. So, legally, the distributors select the application list for populating the repository and allow the installment of that non custodial wallet.
As OEM, we're developers of that non custodial wallet
Logic implies not to risk it even though we're distanced. Governments react to crypto-currencies like vampires to morning light.

 

[cckuhqilfownnfctux]

IMHO if the wallet comes preinstalled then you will be liable for breaking AML regulations, but if the wallet must be installed by the customer themselves then all legal consequencies are on the customer.
remember Google Play and F-Droid have non-custodial wallets and are not accused for avoiding AML for exactly this reason - their users must download and install these wallets themselves.