Topic: Bankers Ask Fed to Regulate Bitcoin - page 2. (Read 1891 times)

I read the report too, it was interesting.

http://www.federalreserve.gov/aboutthefed/fac-20140513.pdf

The story here is that these bankers have no bloody idea what the FED does. FinCEN (U.S. Treasury Department) is responsible for SARs. Anti-money-laundering laws are enacted by congress.

Christ, these people just point at a random government institution and say "Regulate this#!@"



EDIT: I've read the FAC report that this article has completely misrepresented. The bankers report that Bitcoin does not pose a systematic risk to the banking system and state that they expect future regulation to mitigate any future risk it may pose. I liked their language, they view Bitcoin as a burgeoning threat.

The article you've quoted is idiotic and its title is inaccurate.

In a recently released meeting summary, of the Federal Advisory Council (FAC), which is composed of twelve representatives of the banking industry, it became clear that their agenda moving forward will include the regulation of cryptocurrencies.

While the bankers do not yet perceive Bitcoin and other digital currencies as viable competitors to their financial monopoly, the bankers did state that Bitcoin “regulation is advisable”, citing various security concerns that could continue to hinder its adoption, like price instability and numerous exchange failures.

The bankers, however, did not rule out embracing the digital currency and did suggest ways in which the banking industry could engage and participate.

"Should adoption accelerate, banking could participate increasingly in Bitcoin fund flows, especially as multicurrency accounts proliferate and reputational concerns subside."

It was recommended that Bitcoin be subject to the same anti-money-laundering laws, including Know-Your-Consumer, that banks are subjected to.  Moreover, the bankers recommended that Bitcoin be subjected to the suspicious activities reports (SARs) in which banks must currently comply.

Bitcoin is a software-based online payment system described by Satoshi Nakamoto in 2008 and introduced as open-source software in 2009. Payments are recorded in a public ledger using its own unit of account, which is also called bitcoin.

Nakamoto disappeared in early 2010 with over 1 million bitcoins that he had mined while maintaining the lion’s share of the network hashrate.

Full Story: http://altcoinpress.com/2014/09/bankers-ask-fed-to-regulate-cryptocurrencies/