FinCEN Sends Warning Letters to Unregistered Bitcoin Businesses
The Financial Crimes Enforcement Network (FinCEN) has sent out warning letters to bitcoin-related businesses notifying them that they must comply with federal money transmission laws, according to reports. FinCEN, a unit of the US Treasury Department, has sent out "industry outreach" letters regarding anti-money laundering practices. Around a dozen letters have been delivered to bitcoin businesses so far. Back in November, Jennifer Shasky Calvery, the head of FinCEN, suggested at a Senate hearing that virtual currency exchanges and administrators should do three things: register with....
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This week, FinCEN ( The Financial Crimes Enforcement Network) passed two rulings that provided clarification on digital currency business models that now must register with FinCEN as a money service business. These businesses are now subject to FinCEN's compliance obligations. It is also known that SEC (the Securities and Exchange Commission) has issued a large amount of action letters to companies in the digital currency sector. Many digital currency companies will need to take both proactive and reactive actions in response to the letters. Also read: SEC Sends Inquiry Letters to Hundreds....
Hundreds of Bitcoin companies that have released unregistered securities on Counterparty, Cryptostocks will be sent inquiry letters by the SEC. The SEC is asking these Bitcoin companies to voluntarily hand over any documentation that they have regarding their unregistered securities offering. Many Bitcoin companies have been anticipating such action from the SEC and have the necessary information already prepared. On the other hand, other companies may choose to argue that their Counterparty tokens are not securities in any way shape or form. The SEC first tackled a Bitcoin company's....
The United States Treasury's FinCEN (Financial Crimes Enforcement Network) has sent letters to a number of bitcoin-related businesses that serve as warnings to be compliant with anti-money laundering regulations set forth by United States federal and state legislation. This letter, described as an "industry outreach" essentially requests more information about the recipients' business and operating models, and intimidatingly suggests that operating around the bitcoin cryptocurrency is somewhat of a "gray area," and as such, business owners should "err on the side of caution". What that....
The Financial Crimes Enforcement Network (FinCEN) has released new guidance for custodial bitcoin exchanges and payment processors, ruling that such companies may be considered money services businesses under US law. In a response to twin letters submitted in late 2013, the chief US money laundering and terrorist financing regulator explained that bitcoin exchanges may be money transmitters, even if they only match buyers and sellers on their platform. Further, the letters suggest this is true, even if the exchanges behave more like traditional securities or commodities exchanges, where no....
In the last 24 hours, a couple of developments coming out of the US have shaken up American cryptocurrency communities. First, the US Securities Exchange Commission has sent out letters to possibly hundreds of crypto-companies asking them to voluntarily hand over documents relating to their crowdsales. The SEC is clearly concerned with whether such crowdsales run afoul of the commission’s regulations, and there is a gag order attached to these requests for voluntary cooperation. Second, the Financial Crimes Enforcement Network (FinCEN) has offered a little clarity on its position regarding....