FinCEN Announces Publishing of Two Rulings on Virtual Currency Mining and Investing
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....
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FinCen has issued two basic administrative rulings over digital currencies. The first one relates to the application of FinCEN regulations to a virtual currency trading platform, while the second discusses the application of FinCEN regulations to a virtual currency payment system. In ruling FIN-2014-R011, FinCen states that any and all digital currency exchanges must become licensed as a money transmitter including: On the exchange you are buying/selling bitcoins. The exchange carries the burden of giving you legal tender or a different cryptocurrency. According to the FinCen, regulations....
This article is a review of the current FinCEN administrative rulings as they apply to the use of virtual currencies in the United States. FinCEN first started contemplating virtual currencies in March 2013 when they released FIN-2013-G001. Their original ruling did not consider users of virtual currencies to be dealers in foreign exchange, which was a positive outcome because being a dealer in foreign exchange brings with it significant compliance requirements. There was, however, one paragraph in FIN-2013-G001 that was both unexpected and problematic. In section c., FIN-2013-G001 read:"A....
The US Financial Crimes Enforcement Network (FinCEN) has issued new rulings indicating that digital currency-related cloud mining and escrow services should not be considered money transmitters. The two releases came via what appear to be responses to requests from businesses seeking to better understand FinCEN's policies. FinCEN, the bureau of the US treasury that collects and analyzes financial transactions, has previously released influential decisions regarding how consumer bitcoin miners and bitcoin investors should be regulated under money transmission laws. Published letter rulings....
FinCEN's rulings on cryptocurrency compliance yesterday have drawn praise from a congressional leader. He nevertheless cautioned government agencies to continue working together on a cohesive strategy to deal with virtual currency. Senator Tom Carper (D-Del) praised the Treasury-based agency for releasing the two rules, which exempted miners from MSB licensing, and also clarified rules for businesses that wanted to buy and sell bitcoins for their own purposes. "I am glad that FinCEN is working to release rulings in order to provide more clear, consistent, and timely guidelines to potential....
Do the FinCEN virtual currency regulations apply to Bitcoin miners in addition to exchanges? No one seems sure, but now, one consultant wants to find out. A US consulting firm has written to the Financial Crimes Enforcement Network (FinCEN) in the US, asking it to clarify its position on bitcoin mining. Atlantic City Bitcoin (ACB), registered in the state of New Jersey, has requested an administrative ruling to determine once and for all how the FinCEN rules, announced in March, apply to mining. ACB's beef concerns what it highlights as a disparity in FinCEN guidance. The guidance says: "A....