tl;dr: I was charged with operating a money transmittal business without a licence for my trading activity on localbitcoins.com. (profile) Did you received or sent FIAT from or to outside of the USA through bank transaction, cash or any other means ?
All of my localbitcoins.com transactions were cash in person trades at a local coffee shop.
I remove myself from localbitcoins completely,
I advertise there but that's the extent of it. The way it is setup now makes it too easy for criminals and undercovers .
The simple act of advertising on localbitcoins means you
might be considered to be running a business.
If you are running a business then it can/will be considered a money transmittal business and you can be arrested, throw in jail, have your property (computers, Bitcoins, cash, gold, silver, etc.) seized, and face up to a five year prison sentence - that is what happened to me.
It is not the act of
using localbitcoins to do your trading that they use to seize your property, it is the
advertising on the internet and the doing "business" with the general public that allows them to come in and seize your property.
