I hate to ask this but I am sure others have thought about this as well

Running a Cardano Stakepool involves third parties delegating their stake and receiving rewards from the network. It is all automated but the Stakepool operator runs the node and is responsible for the successful operation of the node. I am just wondering if there is the potential here that the node operator may have to be licensed or have a permit as they are involved (maybe indirectly) in the payment of interest to the delegators in return for money invested. I might be paranoid here but as anyone would know from living in the UK that regulation gets into just about every single thing you could possibly do? I am keen to get people’s thoughts on this particularly from the UK. I understand of course that we are responsible for payment of any taxes that arise from the income but this is separate to any approvals or permits required.

I don’t know what the laws are there but the stake pool operator does not pay you your rewards.
the rewards do not first go to the stake pool operator and then to you. The stake pool operator does not, at any time, have access to your rewards or control any mechanism that the rewards go through. As you can see in your wallet when you receive rewards, they come directly to you, they do not pass through the pool operator first… hope that helps…

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I live in the US but if I started a stake pool I would form a corporation for it.

Yes - that is kind of how I was thinking. I also think that the SPO is also only helping to provide the infrastructure behind the system and has no control over the allocation of the rewards other than the fees that are charged for running the pool. I am hoping that is the case and since there is no taking custody or responsibility of the underlying asset (the stake) then that would also negate any suggestion of the SPO being some kind of financial institution. However I am no lawyer and I really do not know. Unfortunately countries like the UK like to regulate everything and it is always at the back of my mind.

Interesting - how would that help?

A corporation can shield you from personal liability and give tax advantages at least in the US.

Sorry, I cannot add any further ideas to this. I simply could’t resist to urge people to use descriptive thread titles - I will simply not read any thread anymore which uses click-bait style in a community forum. No hard feelings :slight_smile:

I am sorry but I simply do not understand your comment. I asked a question because I wanted to know if anybody could advise on something which may be a very real issue. There was never any intention or thought behind the title to be click bait. If it was taken that way then I apologize and take what you say on board. Unfortunately comments like this simply discourage genuine and honest discourse and I do not understand why they have to be made in such a manner. Yes there are hard feelings because I put a lot of work into what I am doing and this is so unnecessary.

No need for hard feelings, because others also put the work in to even understand what you need help with. If participants in this forum see a thread title “I hate to ask this but I am sure others have thought about this as well” you give no clue whatsoever what the actual problem is, you’d like help with. Would you know?

I disagree. Comments like mine simply try to help to keep a forum functional. Almost all folks are here in their free time - they don’t want to waste it. A simple title could have been “Do SPOs have to be licensed?” Don’t take it more severe than necessary if some unknown person from the internet tries to help. :slight_smile: And I know you can do it :-), see your “Cannot run gLiveview anymore or CNTools” thread.

Background: I watched 15 year old forums die out in the past - not because there was nobody daring to ask anymore. But because nobody answering was willing invest their free time trying to find out what the problem was in the first place. If people are not willing to even put in the effort to think of a descriptive thread title, it shows little appreciation for the time of those who are trying to help.

As your original question has been answered, we could simply just consider my comment as checked off. :smiley:

I am sorry but this is just silly. Let us just leave it at this as this is a community forum and should not be about scoring points.