Yes, to open the channel towards your node. But that is only for few seconds, because Dunder LSP works with 0-conf channels.
That means user will receive instant the funds. and can send them out immediately.
It's all an automated process...

Is that a risk? Very minimal.
As I said before, a LSP rugpulling a user for a meaningless amount of sats for opening a channel is dumb and counter-productive. LSP is interested in having more channels from which will charge fees forever, not scamming people for a 100k-1M-5M sats channel.

Would you agree the LSP is temporarily taking custody?

03dc32ac84

1. Who is EU regulator? Did I have any contract with those politicians to represent me or have any authority over me?
2. They talk about "crypto-assets" not Bitcoin, as money, as data, as energy, as code... 

If you fall for their trap, you are lost. You simply answer with "yes" when they will ask you "do you under-stand ?"

*What does it means under-stand?*
*It means you obey to stand UNDER their rules and regulations, you ACCEPT and CONSENT their rules.*
A simple "no , I do not stand under your rules ie enough.*

WHEN PEOPLE WILL REALLY COMPREHEND THIS ASPECT?
Belief in the existence of government is the most dangerous superstition!

[![no-gov.jpg](https://i.postimg.cc/0QXbCkQW/no-gov.jpg)](https://postimg.cc/dkdssKGr)

[![consent-contract.jpg](https://i.postimg.cc/PxDL488M/consent-contract.jpg)](https://postimg.cc/sQVDfxmB)

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/%3Furi%3DCELEX:32023R1113&ved=2ahUKEwiop-bvv-KCAxUe_rsIHYpGBn4QFnoECBMQAQ&usg=AOvVaw1J_R7j73rXHOH1NqG5FpIq

Quote from EU regulation

> This Regulation shall apply to transfers of funds, in any currency, which are sent or received by a payment service
provider or an intermediary payment service provider established in the Union. It shall also apply to transfers of crypto-
assets, including transfers of crypto-assets executed by means of crypto-ATMs, where the crypto-asset service provider,
or the intermediary crypto-asset service provider, of either the originator or the beneficiary has its registered office in the
Union

But processing payments on behalf of others and taking custody in the procesd might require a money transmitter license in your jurisdiction.

That's quite dumb actually. "money transmitter license" is for "legal tender" not for Bitcoin. But people are dumb and just get scared and follow orders like sheeps.
And I answered the same aspect here:


bitcoin

Node runners: How to became a LSP

DarthCoin

>But processing payments on behalf of others and taking custody in the procesd might require a money transmitter license in your jurisdiction.

That's quite dumb actually. "money transmitter license" is for "legal tender" not for Bitcoin. But people are dumb and just get scared and follow orders like sheeps.
And I answered the same aspect here:
https://stacker.news/items/329364/