From reading the complaint; it seems that the BTCKing guy was advertising his services on Silk Road and was active on the forums. Which means that he was knowingly violating the laws on money transmission and specifically the know your customer aspects.
It's pretty clear that in the not too distant future it will be illegal to not make a good faith effort to identify anyone you are selling bitcoins to.
> It's pretty clear that in the not too distant future it will be illegal to not make a good faith effort to identify anyone you are selling bitcoins to.
It is a political question. What happens if the government restricts access not only to drugs, but phones without key escrow, or media players without DRM and uses the money laundering tools to go after the "pirates and tax evaders" who for some reason don't want to share their every communication with the government?
And there are plenty of people who would disagree with you about the morality of the government doing anything but enforcing quality-control and truth in labeling when it comes to what molecules adults want to put in to their bodies.
It's pretty clear that in the not too distant future it will be illegal to not make a good faith effort to identify anyone you are selling bitcoins to.