Compliance Overview

We like following the law, and so should you.

We make every effort to enforce laws and regulations when we can. Please let us know if you have any questions or we are in any violations.

Eobot recommends that you ensure your compliance with all laws and regulations of which you may be subject in your place of residence. Eobot will not be held accountable if you break legal, financial, or tax laws and regulations in your region. We make every effort to comply with local, regional, and international laws and regulations to the best of our abilities, but we cannot be held accountable if users attempt to circumvent our efforts which could result in violation.

FinCEN

We are licensed with Financial Crimes Enforcement Network (FinCEN), an agency within the US Treasury Department (license number 31000082669749). You can search for Eobot Inc on the MSB Registrant Search Web Page here. Alternatively, you can download the PDF listing of our registration.

Company Information

Launched in April 2013, Eobot operates out of and is incorporated in Los Angeles, California. Corporation information can be found by searching for "Eobot Inc." at the California Secretary of State Business Search.

Taxes

It is the user's responsibility to track gains/losses and report any taxable events.

For US citizens, the IRS has released guidance on Bitcoin and cryptocurrency for taxation purposes. It is treated as "personal property" by the IRS, similar to gold, stocks, or real-estate. The following article from CoinDesk is helpful to understand some of the taxation issues.

We do not provide any tax guidance. However, the following information from FinCEN may be helpful: "A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter." However, in doing so, this must be reported as a taxable event. It is currently the user's responsibility to track financial gains and losses and report any taxable events.

If you have questions about tax compliance, please refer to a local tax preparation professional that knows your local tax code.

AML/KYC

Eobot is fully committed to preventing fraud and adherence to all AML (anti-money laundering), KYC (know your customer), and MSB (money service business) regulations and requirements. We work hard to identify our customers. We reserve the right: To retain user identity information; To require users to scan and upload photo ID and other documents; To verify information via third party client APIs.

In addition, we will perform the following to prevent criminal activity with policies and procedures: the development of internal policies, procedures and controls; designation of a compliance officer; an ongoing employee training program; and an independent audit function to test programs.

USA PATRIOT Act

Eobot fully supports the USA PATRIOT Act. The official title of the USA PATRIOT Act is "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001." To view this law in its entirety, click here for PDF of USA PATRIOT Act.

The purpose of the USA PATRIOT Act is to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and other purposes.

BitLicense

Eobot is not available in New York, and more information can be found on our BitLicense page.

Banned Countries

Due to US Economic Sanctions Laws, Eobot is not available in North Korea, Iran, Cuba, and Syria.

Transparency

Eobot follows two guidelines to ensure full transparency:
1 - All transactions are always "on blockchain" and not "off blockchain". This means no transactions are hidden from the world and completed inside of Eobot. All cryptocurrencies are sent, usually including miner fees, and can be seen on the blockchain for that respective cryptocurrency. This helps secure the network, makes our transactions transparent, provides an easier way to debug and track down coins, and reduces the chance for fraud. An off-chain transaction would be like what Coinbase could do if both users are Coinbase users and they change coins from one email to another, mark it in the database, and Bitcoin is never actually sent from one wallet to another.

2 - We have a real-time Audit, where you can track exactly how many coins we have both in hot and cold wallets. This way we can never "hide" a hack job against us. For several years, we are the ONLY Bitcoin company that provides this type of audit.

Mining

Mining is currently enabled in 49 United States and Internationally.

New York residents are unable to access the site, or mining features, due to the New York BitLicense.

Mining of cryptocurrencies is currently a legal gray area in many parts of the world. According to FinCEN, "By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter."

Bitcoin miners in the United States have requested a clarification from FinCEN on the matter, but very little has been forthcoming. It seems to be that the miners themselves do not need to be registered with FinCEN as a money transmitter as long as they use an exchange that is licensed with FinCEN to sell the coins they mine. Until there is a final clarification on the matter, mining is currently enabled in 49 United States (only NY is excluded).

There are only a handful of countries outside of the United States that currently have any kind of enforceable cryptocurrency ban in place, so mining is currently available internationally as well. Please check for any local regulations with which you may need to comply before mining cryptocurrency.

Exchange

Exchange is currently enabled in 49 United States and Internationally.

New York residents are unable to access the site, or exchange features, due to the BitLicense.

Exchanges are defined as MTBs by FinCEN. According to FinCEN, "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." Due to these laws and regulations, cryptocurrency to cryptocurrency exchange trading (for example BTC exchanged into DOGE or LTC exchanged into STEEM) is only available for international users and select states.

Resources

Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html


Fiat amounts shown are the equivalents if cryptocurrency is traded on the popular exchanges, such as Bittrex.
Eobot does not allow fiat (USD/EUR/JPY/GBP/CNY/RUB/etc.) in or out. Fiat amounts are for illustrative purposes only.
Eobot has no opinion regarding alleged relative values of virtual currencies in relation to fiat currencies.
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