Interpreting the Recent FinCEN Rulings on Virtual Currencies
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....
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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....
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....
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....
The Financial Crimes Enforcement Network (FinCEN) has been to date one of the most active - and more controversial - US federal agencies to address the bitcoin ecosystem, doing so through a number of published rulings aiming to provide clarity to the industry. Founded in 1990, the US agency is responsible for collecting information about financial transactions that may be used to support money laundering, terrorist financing and financial crimes. FinCEN first addressed emerging virtual currencies in 2008 and has been simultaneously praised for engaging with the bitcoin ecosystem, while....
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....