[Opensim-users] Advantages of grid using OMC or Podex vs using Paypal + fictional currency?

[Olivier van Helden]

In my experience, Paypal DOES report to governemnts, over a certain 
amount. This is mandatory for them.

The grids, like any other commercial service, are supposed to report 
their own transactions (how much virtual currency they sold) but may 
escape from the rules of a banking service like paypal (report what the 
users earned), at least as far as there are a few transactions.

It brings an interesting question. If I sold this year 1000 "MUC" (My 
Own Currency) for, keep it simple, 1000 EUR... These are in my users' 
accounts, and they will spend it and, some day, they will ask a refund, 
so this is not my money. How do I calculate what I really earned? If I 
don't make it clear, the tax controlers may consider my 1000 EUR as 
benefit and I will have to pay taxes on money somebody else owns. That's 
why reporting users transactions is not only a requirement, it would 
also be safe practice to avoid paying taxes on behalf of users.

Le 19/12/2014 07:09, M.E. Verhagen a écrit :
> I do not think paypal, omc, podex or others are the virtual currency 
> providers of the grids. The grids sure have do their taxes in the 
> country the reside in.
> There is no such requirement thing for the grids to report 
> transactions over a certain amount. (The banks in the eu have got some 
> rules about reporting large transactions and so, but there does not 
> exists such a requirement for the companies living here.)
>
> 2014-12-19 3:27 GMT+01:00 John Sheridan <john at pseudospace.net 
> <mailto:john at pseudospace.net>>:
>
>     Correct me if I'm wrong, but aren't virtual currency providers
>     required to register with the government now (ala BitCoin)? I know
>     on the SL side of things they made some changes wherein those who
>     cash out over a certain amount yearly need to register their tax
>     information.  Maybe it would be worth running this past your
>     lawyer or accountant?
>
>
>
>     On 12/18/2014 05:18 PM, Ethan Grammatikidis wrote:
>>     On Thu, Dec 18, 2014, at 02:07 PM, Erik Gordon Bainbridge wrote:
>>>     What are the advantages and disadvantages of using Paypal as a
>>>     grid currency rather than OMC or Podex?  I'm interested in the
>>>     perspectives both of people who sell in grids and of grid
>>>     owners.  I am building a grid for a company that wants to use a
>>>     Kitely model of fictional currency combined with Paypal instead
>>>     of using OMC or Podex.  I think the complexity of setting up
>>>     fictional currency + Paypal could outweigh the advantages.  I
>>>     need both perspectives so I can give my client the best advice.
>>     What? OMC and Podex both offer "fictional currency" backed by
>>     real money. Any grid with an exchangeable currency provides
>>     "fictional currency" backed by real money in one way or another.
>>     Your choice is whether to contract with a company (OMC or Podex)
>>     which specializes in this, or to making your own system.
>>     Making your own system doesn't just mean writing code, you will
>>     also have to choose what rules to apply. If I were doing this,
>>     I'd think deciding on the rules would be harder work than writing
>>     the code.
>>
>>
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