FinCEN Ruling Does Not Classify Bitcoin Mining as Money Services Business
To say bitcoin is considered to be in a gray area in the realm of financial regulation isn't a stretch. Seemingly daily, new reports are coming out that suggest the fact. Take a look at the Casascius Bitcoin mint, which was indirectly shut down by FinCEN for being "considered" a money services business. Or take a look at what happened this week in India, when authorities raided an exchange because they thought it conflicted with preventative money-laundering legislation. But we're finally getting some clarity when it comes to bitcoin mining, and what miners do with the bitcoin they've....
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The United States Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) announced two administrative rulings Thursday with regard to whether an individual or business's actions in the virtual currency space would classify them as a money transmitter, thereby being requiring them to register with FinCEN. The first ruling notes that miners of virtual currencies, the most popular of which is bitcoin, who do so for their own purposes are not considered to be a money transmitter. They will not have to register with FinCEN. The second ruling states that companies that buy....
Some good news came out of the US Treasury Department for American Bitcoin miners. Anyone mining Bitcoins for his or her own purposes and not for the benefit of others will not be consider a money services business and will thus have no obligation to register with FinCEN, according to a ruling by the group. FinCEN, or the Financial Crimes Enforcement Network, has thus far required any US-based Bitcoin business to register as money transmitters. But if you are mining Bitcoins simply for your own digital currency wealth and spending those earnings for your sole benefit, then you don’t fall....
FinCEN, The US Department of Treasury Financial Crimes Enforcement Network, has issued a ruling that tries to clear up what could be a problem for Bitcoin mining. The problem is explained by whether someone who mines Bitcoins for themselves can trade the Bitcoins for fiat money at an exchange or spend them without being classified as a Money Service Business (which forces the miner to register with FinCEN). Many Bitcoin miners have been concerned that tough regulation from FinCEN would mean that they would have to require an auditor staff, hence making it hard for individuals to mine....
As financial service firms expand their use of the bitcoin block chain for trading and business activity, the Financial Crimes Enforcement Network (FinCEN) isn't missing a beat. FinCEN, an enforcement arm of the U. S. Department of Treasury, has ruled that companies using the bitcoin block chain to transfer precious metals are considered money transmitters and therefore subject to anti-money laundering restrictions. The ruling came in response to a letter from an unnamed company seeking clarification on this point. FinCEN posted the ruling on its website to serve as guidance to financial....
The United States Treasury's Financial Crimes Enforcement Network (FinCEN) has offered some clarity on the matter of renting bitcoin miners (or mining power from bitcoin mining farms) in a letter dated April 29th. The letter comes in response to an inquiry from a redacted entity, who questions whether or not renting mining power qualifies as a money services business, thus requiring the business to register with FinCEN in addition to meeting a number of standards as per the Bank Secrecy Act (also referred to as the BSA). Such standards include AML/KYC (anti-money....