Topic: Bitcoins are not "legalized" in the US - understanding FinCEN's announcement - page 2. (Read 5453 times)
March 19, 2013, 12:25:32 PM
FinCEN does not write law. They provide guidance.
March 19, 2013, 12:22:52 PM
FinCen doesn't make Bitcoin legal or illegal...they just recognize that Bitcoin works as money and they want everyone to know that financial cimes with this type of money is under their jurisdiction...just like if the beaureau of tobacco, alcohol, and firearms declared laser pointers to be firearms...this doesn't make laser pointers legal or illegal...and it doesn't imply that other government agencies can't regulate laser pointers or declare their possession or production illegal.
March 19, 2013, 12:05:10 PM
Your right this is the start to try to trace it, but you are wrong about legality.
March 19, 2013, 11:51:52 AM
It was perfectly clear in their statement that markets for exchanging BTC for fiat currencies are to be regulated (not banned, not illegal).
It was also perfectly clear that buying things (i.e. goods and services) is not illegal and not to be regulated.
It was all spelled out plain as day.
It was also perfectly clear that buying things (i.e. goods and services) is not illegal and not to be regulated.
It was all spelled out plain as day.
Well said.
Rampant misconceptions have been flying everywhere on here in response to the guidance.
March 19, 2013, 09:54:29 AM
It was perfectly clear in their statement that markets for exchanging BTC for fiat currencies are to be regulated (not banned, not illegal).
It was also perfectly clear that buying things (i.e. goods and services) is not illegal and not to be regulated.
It was all spelled out plain as day.
It was also perfectly clear that buying things (i.e. goods and services) is not illegal and not to be regulated.
It was all spelled out plain as day.
March 19, 2013, 09:51:01 AM
The following is my understanding of the FinCEN's announcement. It is by no means legal advice.
First of all, let's remember who's talking. This is not the "USA", this is not the "US Government", it's not the Supreme Court. I'm no expert on federal American organizations, but what we have here is simply a statement by FinCEN. No more.
What is FinCEN? According to their website (http://www.fincen.gov):
"FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities."
Well, suddenly it's very clear what their interest is in bitcoin. If you want to send some money to fund some drug or arms industry in some drug cartel or terrorist organization that the US did not approve of, you will want to launder the money. Let's face it, the easiest way to launder and send funds abroad is with bitcoin. FinCEN's job is to follow that money. If you're buying watermelons, potatoes or cars (i.e. you are a regular user), then it's none of their business. Taxing, regulation, and other laws have nothing to do with FinCEN. And if you're buying drugs or arms then there are laws that still apply whether you're buying them with dollars or bitcoins.
So what does interest FinCEN? They need to trace money. The moment you trade your dollars for bitcoins, they can no longer trace it. They're obviously not morons because they understand that tracing bitcoins is not possible at the moment. They know that the moment your money enters bitcoin-land, they lost it. So here's what they're doing now: they're simply following everything they can that's moving between the USA and bitcoin-land - they're tracing the exchange of dollars for bitcoins and back. It's the best they can do for now, and it's just the first step. Who know how many will be taken.
FinCEN does NOT determine the "legality" of bitcoin. This does not, by any means, mean that tomorrow the Supreme Court cannot rule out bitcoins "ILLEGAL". This does not, by any means, mean that tomorrow President Barack Obama cannot gather a press conference to announce that "BITCOINS ARE TERRORIST MONEY AND WE WILL STOP THIS BITCOIN BUSINESS BY ANY MEANS NECCESSARY".
The announcement today only means that one American agency is now interested in tracking all money flowing between the USA and bitcoin-land. Bitcoin has a long uphill battle. This is not a victory, this is a slope.
First of all, let's remember who's talking. This is not the "USA", this is not the "US Government", it's not the Supreme Court. I'm no expert on federal American organizations, but what we have here is simply a statement by FinCEN. No more.
What is FinCEN? According to their website (http://www.fincen.gov):
"FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities."
Well, suddenly it's very clear what their interest is in bitcoin. If you want to send some money to fund some drug or arms industry in some drug cartel or terrorist organization that the US did not approve of, you will want to launder the money. Let's face it, the easiest way to launder and send funds abroad is with bitcoin. FinCEN's job is to follow that money. If you're buying watermelons, potatoes or cars (i.e. you are a regular user), then it's none of their business. Taxing, regulation, and other laws have nothing to do with FinCEN. And if you're buying drugs or arms then there are laws that still apply whether you're buying them with dollars or bitcoins.
So what does interest FinCEN? They need to trace money. The moment you trade your dollars for bitcoins, they can no longer trace it. They're obviously not morons because they understand that tracing bitcoins is not possible at the moment. They know that the moment your money enters bitcoin-land, they lost it. So here's what they're doing now: they're simply following everything they can that's moving between the USA and bitcoin-land - they're tracing the exchange of dollars for bitcoins and back. It's the best they can do for now, and it's just the first step. Who know how many will be taken.
FinCEN does NOT determine the "legality" of bitcoin. This does not, by any means, mean that tomorrow the Supreme Court cannot rule out bitcoins "ILLEGAL". This does not, by any means, mean that tomorrow President Barack Obama cannot gather a press conference to announce that "BITCOINS ARE TERRORIST MONEY AND WE WILL STOP THIS BITCOIN BUSINESS BY ANY MEANS NECCESSARY".
The announcement today only means that one American agency is now interested in tracking all money flowing between the USA and bitcoin-land. Bitcoin has a long uphill battle. This is not a victory, this is a slope.
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