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A Private Membership Association (PMA) is a type of legal entity designed to operate as a private organization where membership is restricted and governed by its own set of rules and agreements, rather than by public laws or regulations. PMAs are typically used to offer certain services or products to a select group of people, often for privacy, liability, or legal protection reasons.

In the context of cryptocurrency, a PMA can be used by an organization to offer education or services to a specific group of individuals while maintaining a level of privacy and control over its operations.

Note from Chris:

Disclaimer: Before you read this, please know that I am not an attorney and that I am giving you my understanding of what a PMA is to the best of my ability in an honest and forthcoming manner. However, like all things in life, there will be those who may disagree with my perspective and have a different opinion on the subject (if you prefer a more main stream answer, not much different, see above). Therefore, before you format your business, group, or community as a PMA, be sure to do your own research and seek advice from an experienced legal professional.

A Private Membership Association (PMA) is a legal entity formed by individuals who come together under a private contractual agreement to create a private organization as opposed to one that is open to the public. The members agree to the terms of the association, and the PMA acts as a private entity, with all transactions amongst members being treated in a private manner. The distinction of “private” in regard to the association and its members, along with its transactions, is crucial. This is because it can limit government oversight in some areas, as the activities are considered private contractual matters rather than public commerce or services.

When I made the decision to structure Bitcoin Otter as a PMA, I did so mostly because the regulations on cryptocurrency were, and still are, murky and capricious. The people in charge of judging what cryptos really are and how to manage them fairly in the interest of the public good have proven many times over that they are not discharging their duties in a conscientious manner. Thankfully, some of those officials have been removed, and a more “common sense” approach is being pursued, but that was not the case when I started the PMA in 2021. The persecution against crypto investors was/is so prevalent that the Bitcoin Otter PMA was debanked at one point simply because the Federal Reserve decided to send an alert to all member banks that it would not serve any business that dealt in cryptos or even taught on the subject of cryptocurrencies, which is what we do at the Bitcoin Otter PMA. Over time, I have become increasingly confident that the legal structure of a PMA was the right decision for Bitcoin Otter, but whether it is right for you and your business, club, or community is completely up to you because, thanks to God above, America is still a free country