1As a commercial, for-profit service, or, for instance, trading them to and from just friends, relatives, coworkers, etc on an infrequent basis? (There's a difference, so that's why I ask.} – Stephen Gornick – 2012-09-24T21:06:56.810

Assume a for-profit service. – Sam Weinberg – 2012-09-25T10:12:48.763

Hey, are you still there? – Sam Weinberg – 2012-09-27T08:13:43.273

1

I am, but I don't know the answer. I am not a lawyer and if this is a for-profit service I'ld recommend you get legal advice. California is not a state that is necessarily friendly to money transmitters (see https://www.facecash.com/legal/ca.html for an example) but whether buying and selling Bitcoins makes you a money transmitter requiring licensing is not something I can answer.

I think California should be the same as anywhere else. See this: http://bitcoin.stackexchange.com/questions/337/what-are-the-legal-processes-that-someone-would-have-to-go-through-in-order-to-g?rq=1