Augh and to think in my jurisdiction authorities barely understand Forex trading.
Old rules will that can't catch up to innovation will always stifle it. If you have to, or you feel you have to notify your authorities about what it is you're doing please remember to first check that they actually understand and have up to date laws regarding your activity -- you could be walking into a trap that wasn't even designed for you specifically.
I agree with you. Reading this story have given me tons of concerns, but it also gave me more insight.