That isn't quite true. Money business laws only apply to people doing it as business, so your friend is in the clear de-jure as well as de-facto. One of the things a prosecutor would have to prove as part of the case is that this was in fact a business. Typically this would be done by showing that he had been listing both buy and sell on localbitcoins.com and/or by setting up a test purchase that showed he was dealing with anyone who showed up.

There is a difference from selling a few cars to strangers, and setting up a car-selling business which would then be subject to a bajillion rules and regulations.

The same for selling bitcoins. You can do it a few times but if you make it a business you become a MSB.