Digital Tokens - any law prohibiting the sale of digital objects Over the Counter

Lbeard

Let's say, for the sake of argument, I'm the admin of an online multi-player game called Leprechaun world.

In Leprechaun world, you can buy and sell lucky charms and crocks of gold, even silver shelaighlies. Play Leprechaun games of chance, while smoking clay pipes filled with Leprechaun tobacco, where digital tokens are exchanged from one leprechaun to another.

And I have a shop on Talbot street. And game players can walk in the door and buy virtual crocks of gold from me, etc.

Would I have any issues with the Leprechauns in blue?

Cody Pomeray

Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

S. 7, Money laundering occurring in State
.
(1) A person commits an offence if—

(a) the person engages in any of the following acts in relation to property that is the proceeds of criminal conduct:

(i) concealing or disguising the true nature, source, location, disposition, movement or ownership of the property, or any rights relating to the property;
(ii) converting, transferring, handling, acquiring, possessing or using the property;
(iii) removing the property from, or bringing the property into, the State,
and

(b) the person knows or believes (or is reckless as to whether or not) the property is the proceeds of criminal conduct.


(2) A person who attempts to commit an offence under subsection (1) commits an offence.


(3) A person who commits an offence under this section is liable—

(a) on summary conviction, to a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months (or both), or

(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 14 years (or both).


(4) A reference in this section to knowing or believing that property is the proceeds of criminal conduct includes a reference to knowing or believing that the property probably comprises the proceeds of criminal conduct.

(5) For the purposes of subsections (1) and (2), a person is reckless as to whether or not property is the proceeds of criminal conduct if the person disregards, in relation to property, a risk of such a nature and degree that, considering the circumstances in which the person carries out any act referred to in subsection (1) or (2), the disregard of that risk involves culpability of a high degree.

See also s.19 of the criminal justice act 2011 on reporting awareness of money laundering. Failure to report information of material assistance in the prevention of money laundering renders a person subject to a class a fine/ 5 years imprisonment or both, under s.12 of that act. defence of reasonable excuse burden falls on you to be proven.

Lbeard

(a) the person engages in any of the following acts in relation to property that is the proceeds of criminal conduct:

(i) concealing or disguising the true nature, source, location, disposition, movement or ownership of the property, or any rights relating to the property;
(ii) converting, transferring, handling, acquiring, possessing or using the property;
(iii) removing the property from, or bringing the property into, the State,
and

Yes, but what interests me is the definition of property in the act

“property” means all real or personal property, whether or not heritable or moveable, and includes money and choses in action and any other intangible or incorporeal property;

I believe that intangible and incorporeal property is to cover virtual property - like tokens in a computer game. But if it is intangible and incorporeal, how can it be said to exist at all.

An example would be. If in Leprechaun world, someone know to you, stole your crock of gold. Could you go to the garda with a complaint of theft. What order could a judge make for the gold to be returned. Remember the server is in another jurisdiction, and Leprechaun world is also owned and registered through a string of shell companies.

Even if the judge orders Leprechaun world to hand over the gold, where do they hand this virtual and incorporeal property over to?........It's just electrons sitting on conductors........it's not legal tender within the banking system.

Silkroad have just been raided by the American police........A question is, can they seize the bitcoins, or is there anything for them to seize?

There are a few good other questions regarding the law I might get to. But this notion of incorporeal, or intangible property, has anything ever been tried in Ireland regarding the

Carawaystick

Lbeard wrote: »

Silkroad have just been raided by the American police........A question is, can they seize the bitcoins, or is there anything for them to seize?

According to a commenter in the FT today
if the bitcoins in the bitcoin wallets seized are backed up, then whoever transacts with those bitcoins first wins.

So the cops may be able to seize the bitcoins legally, but I dunno if they can seize them actually.

I know nothing about incorporeal property under irish law, but reading the act quoted, I thought the definition of property was where it'd turn.