user1878: Tradehill was shutdown for various regulation issues, including not having the required money transmission licenses.
What were the money transmission licenses that were required?
What other compliance rules should be followed?

user2768: There aren't many regulations to transmitting bitcoins. Probably do some extra reserach, but it seems safe and clear

user2593: Tradehill got shutdown because it went bankrupt when Dwolla started reversing money transfers made to them despite their terms of service stating that no chargebacks could occur (at the time). There is currently a lawsuit pending.
The required licenses will vary depending on the legal context and the interpretation of the business, made by the relevant legal authorities.
There is a lot of legal uncertainty surrounding Bitcoin, but there is one thing that is pretty certain : in all jursidictions you need a license to maintain fiat-denominated balances on behalf of third-parties.

user6556: I recently co-authored an article that contains some background information to your question.  William B. Fleming and Joseph Evans, Bitcoiners in the Courtroom Part I: Government Oversight, Ford. Corp. L. Forum (Aug. 20, 2013)
Bitcoiners in the Courtroom: Government Oversight (PDF)
Bitcoiners in the Courtroom: Government Oversight (TXT)

1878: <p>Tradehill was <a href="http://arstechnica.com/tech-policy/2012/02/major-bitcoin-exchange-shuts-down-blaming-regulation-and-loss-of-funds/" rel="nofollow">shutdown for various regulation issues</a>, including not having the required money transmission licenses.</p>

<p>What were the money transmission licenses that were required?</p>

<p>What other compliance rules should be followed?</p>
 2768: <p>There aren't many regulations to transmitting bitcoins. Probably do some extra reserach, but it seems safe and clear</p>
 2593: <p>Tradehill got shutdown because it went bankrupt when Dwolla started reversing money transfers made to them despite their terms of service stating that no chargebacks could occur (at the time). There is currently a <a href="http://blogs.desmoinesregister.com/dmr/index.php/2012/03/06/bitcoin-exchanges-files-lawsuit-against-dwolla" rel="nofollow">lawsuit</a> pending.</p>

<p>The required licenses will vary depending on the legal context and the interpretation of the business, made by the relevant legal authorities.</p>

<p>There is a lot of legal uncertainty surrounding Bitcoin, but there is one thing that is pretty certain : in all jursidictions you need a license to maintain fiat-denominated balances on behalf of third-parties.</p>
 6556: <p>I recently co-authored an article that contains some background information to your question.  William B. Fleming and Joseph Evans, Bitcoiners in the Courtroom Part I: Government Oversight, Ford. Corp. L. Forum (Aug. 20, 2013)</p>

<p><a href="http://www.gagespencer.com/firm-news/Bitcoiners-in-the-Courtroom-Part-I.pdf" rel="nofollow">Bitcoiners in the Courtroom: Government Oversight (PDF)</a></p>

<p><a href="http://fordhamcorporatecenter.org/2013/08/20/bitcoiners-in-the-court-room-part-i-government-oversight/." rel="nofollow">Bitcoiners in the Courtroom: Government Oversight (TXT)</a></p>
