Topic: 2013-08-04 bankdirector.com Should Your Bank Do Business With Bitcoin? (Read 589 times)
September 05, 2013, 11:00:29 PM
This is a great article. I think this will create good opportunities to bitcoin businesses that wish to do partnerships with banks.
September 05, 2013, 05:33:37 PM
...there’s no reason a compliant Bitcoin company shouldn’t be able to get banking services...
http://www.bankdirector.com/index.php/board-issues/strategy/should-your-bank-do-business-with-bitcoin/
Here are factors to consider if a Bitcoin company seeks a relationship with your bank:
Is the Bitcoin company compliant with the traditional regulatory requirements for financial institutions including Bank Secrecy Act regulations?
Is the Bitcoin company registered as a money services business in accordance with the FinCEN guidance issued in March and has the company fully implemented an effective AML and Know Your Customer compliance program?
Even if not required, what procedures are in place for the Bitcoin company to collect the personal information on customers and transactions? Although Bitcoin is favored by some for its anonymity, Bitcoin intermediaries can implement procedures to voluntarily comply with obligations.
Is the Bitcoin company licensed under state money transmitter laws? And if not, have they received legal opinions on why a license is not required?
As regulatory focus increases, are there compliance policies and procedures in place to enable the Bitcoin company to react quickly, effectively and efficiently to new regulations?
Does the Bitcoin company have an experienced compliance officer?
Has the Bitcoin company conducted adequate due diligence on all parties who touch the flow of funds?
What Does This Mean to me?
Whether it is Bitcoin or another virtual currency, the potential exists to revolutionize international payments through a Bitcoin style payment or distribution system. For this to occur, regulators, financial institutions and businesses need to understand and accept the potential impact and join the dialog to develop strong banking relationships with Bitcoin companies that focus on complying with the law even in light of the current regulatory uncertainty.
http://www.bankdirector.com/index.php/board-issues/strategy/should-your-bank-do-business-with-bitcoin/
Here are factors to consider if a Bitcoin company seeks a relationship with your bank:
Is the Bitcoin company compliant with the traditional regulatory requirements for financial institutions including Bank Secrecy Act regulations?
Is the Bitcoin company registered as a money services business in accordance with the FinCEN guidance issued in March and has the company fully implemented an effective AML and Know Your Customer compliance program?
Even if not required, what procedures are in place for the Bitcoin company to collect the personal information on customers and transactions? Although Bitcoin is favored by some for its anonymity, Bitcoin intermediaries can implement procedures to voluntarily comply with obligations.
Is the Bitcoin company licensed under state money transmitter laws? And if not, have they received legal opinions on why a license is not required?
As regulatory focus increases, are there compliance policies and procedures in place to enable the Bitcoin company to react quickly, effectively and efficiently to new regulations?
Does the Bitcoin company have an experienced compliance officer?
Has the Bitcoin company conducted adequate due diligence on all parties who touch the flow of funds?
What Does This Mean to me?
Whether it is Bitcoin or another virtual currency, the potential exists to revolutionize international payments through a Bitcoin style payment or distribution system. For this to occur, regulators, financial institutions and businesses need to understand and accept the potential impact and join the dialog to develop strong banking relationships with Bitcoin companies that focus on complying with the law even in light of the current regulatory uncertainty.
Jump to: