> For the complete documentation index, see [llms.txt](https://docs.bitcarbon.com/diamond-standard-carats-bitcarbon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitcarbon.com/diamond-standard-carats-bitcarbon/carats/carats-details/money-transmitter-considerations.md). # Money Transmitter Considerations When Bitcoin was invented, very few laws or regulations were applicable to its use. Virtual currency definitions were added to tax codes, and in many countries the definition of “money transmission” expanded to include virtual currencies. In the U.S., exchanges and applications that incorporate virtual currencies must have a money transmitter license. Commodity vault receipts, even in electronic form, are well defined and have been in use for decades. Vault receipts have been exempted from many virtual currency regulations, such as the New York Department of Financial Services Bitlicense, which specifically excludes the issuance of tokens for physical goods, as well as from virtual currency contract law, as in the case of U.C.C. Section 12, which excludes commodity vault receipts. Regulations vary between U.S. states and more so between different countries. And regulators, attorneys-general and private attorneys frequently have different interpretations of seemingly apparent laws. While they must only rely on the advice of their own counsel, application developers in certain domiciles may have a valid argument that they do not require a money transmitter license to incorporate Carats for peer to peer transactions. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.bitcarbon.com/diamond-standard-carats-bitcarbon/carats/carats-details/money-transmitter-considerations.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.