2013-03-18 US Treasure guidance on Virtual Currencies

Rygon

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Quote from: totaleclipseofthebank on March 19, 2013, 01:08:24 PM

Quote from: Rygon on March 19, 2013, 11:42:02 AM

Quote from: grondilu on March 19, 2013, 10:27:42 AM

I can't withstand bureaucratic writing. Can anyone make a sum-up?

Bitcoin isn't considered a currency because it's not "legal tender", AKA, "fiat"

Anyone who has exchanged their bitcoins for direct fiat, gift cards or other fungible fiat-demoninated assets are considered a "money transmitter." I have no clue what that means legally, but I would bet that 90% of the folks on this forum fall into that category.

I don't think so. The way I understand it is that only "creators" are money transmitters. Anyone who acquires coins by buying them or selling services for them is just a user and is not regulated as a money transmitter. In fact, I even think this is written so that only pool ops are money transmitters, since the bitcoins are actually "created" by the pool ops, and individual miners are only "selling" their computing power for a payment in bitcoins. I.e. miners are users, pool ops and exchanges are money transmitters.

Quote

In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

Perhaps. I interpreted this section to apply to anyone who obtained coins from someone else and transferred them again for money. But I'm not a lawyer.

totaleclipseofthebank

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Quote from: Rygon on March 19, 2013, 11:42:02 AM

Quote from: grondilu on March 19, 2013, 10:27:42 AM

I can't withstand bureaucratic writing. Can anyone make a sum-up?

Bitcoin isn't considered a currency because it's not "legal tender", AKA, "fiat"

Anyone who has exchanged their bitcoins for direct fiat, gift cards or other fungible fiat-demoninated assets are considered a "money transmitter." I have no clue what that means legally, but I would bet that 90% of the folks on this forum fall into that category.

I don't think so. The way I understand it is that only "creators" are money transmitters. Anyone who acquires coins by buying them or selling services for them is just a user and is not regulated as a money transmitter. In fact, I even think this is written so that only pool ops are money transmitters, since the bitcoins are actually "created" by the pool ops, and individual miners are only "selling" their computing power for a payment in bitcoins. I.e. miners are users, pool ops and exchanges are money transmitters.

Rygon

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Merit: 500

Quote from: grondilu on March 19, 2013, 10:27:42 AM

I can't withstand bureaucratic writing. Can anyone make a sum-up?

Bitcoin isn't considered a currency because it's not "legal tender", AKA, "fiat"

Anyone who has exchanged their bitcoins for direct fiat, gift cards or other fungible fiat-demoninated assets are considered a "money transmitter." I have no clue what that means legally, but I would bet that 90% of the folks on this forum fall into that category.

Gabi

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If you want to walk on water, get out of the boat

Quote from: grondilu on March 19, 2013, 10:27:42 AM

I can't withstand bureaucratic writing. Can anyone make a sum-up?

"attack on bitcoin" Wink

grondilu

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I can't withstand bureaucratic writing. Can anyone make a sum-up?

Rygon

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Bitcoin doesn't have any administrators. Grin

marcus_of_augustus

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Eadem mutata resurgo

Right on cue ... I was picking that as soon as bitcoin got to around $0.5 bill the machinery of monetary oppression would roll into action.

cjp

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It sounds to me like:

not subject to regulation as a money transmitter:

Mine bitcoins and sell them for goods or services
Buy bitcoins and sell them for goods or services

subject to regulation as a money transmitter:

Mine bitcoins and sell them for "real currency or its equivalent"
Buy bitcoins and sell them for "currency, funds, or other value that substitutes for currency"
Accept bitcoins (for goods or services) and sell them for "currency, funds, or other value that substitutes for currency"

A couple of scenarios are missing or only implicitly covered, but the difference seems to be how you spend your bitcoins, not how you obtain them.

RATM69

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It sounds like to me that they are saying all U.S. miners that convert to cash or (They are also implying gift cards here) anything of value. These persons would be considered money transmitters and would be required to register with FinCEN.

Bimmerhead

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Quote

c. De-Centralized Virtual Currencies

A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by their own computing or manufacturing effort.

A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

So what does that mean for U.S.-based miners who sell their bitcoins?

RodeoX

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The revolution will be monetized!

Is this as important a document as I think?

rikur

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http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html

Still reading it, but they are taking notice!

Topic: 2013-03-18 US Treasure guidance on Virtual Currencies (Read 1177 times)