Thank you for your input!
What about buying bitcoins from an exchange? If that is legal, would you be required to use an exchange that is registered with FinCEN?
What about selling bitcoins that you didn't mine? Again, if it is legal to sell bitcoins on an exchange, are you required to use an exchange that is registered with FinCEN or could you use something like BTC-E?
Topic: FinCEN - page 2. (Read 2798 times)
By the letter of the guidance there is no exemption for using a registered service. Yes it sounds stupid and it is improbable that FinCEN would go after each miner but if you exchange virtual currency for virtual or real currency you are required to register unless an exemption applies. One exemption is for not for profit, infrequent activity.
So to answer your question.
Miner exchanges virtual currency on exchange for USD? Yes an MSB (I doubt this will be enforced but the guidance provides no exemption)
Miner exchanges coins for bullion? No. Sells of goods or services (other than money transmission) are exempt
Miner exchanges one virtual currency for another? Yes an MSB
Once again I don't necessarily agree with this, nor do I think it makes much sense, and it is highly unlikely FinCEN will (or even will be able to) enforce the regs to the letter of the guidance but that is what they advised.
So to answer your question.
Miner exchanges virtual currency on exchange for USD? Yes an MSB (I doubt this will be enforced but the guidance provides no exemption)
Miner exchanges coins for bullion? No. Sells of goods or services (other than money transmission) are exempt
Miner exchanges one virtual currency for another? Yes an MSB
Once again I don't necessarily agree with this, nor do I think it makes much sense, and it is highly unlikely FinCEN will (or even will be able to) enforce the regs to the letter of the guidance but that is what they advised.
If a miner mines bitcoins, would a miner that is not registered as a money transmitter be able to sell them on an exchange that has registered with FinCEN (MtGox, Bitinstant, etc) or would they both have to be registered as a money transmitter?
Would a miner be able to sell bitcoins that he/she mined for gold/silver and not be considered a money transmitter?
Would a miner that mined litecoins be able to exchange them for bitcoins on BTC-E?
Putting mining aside for a moment; Is it legal to transfer funds to BTC-E and buy litecoins and eventually exchange them for Bitcoins on BTC-E when the price is right? Then find an exchange such as Bitinstant or MtGox that apparently has registered with FinCEN to sell the bitcoins for USD? Or would someone in the USA, not be able to use BTC-E because they are not registered?
Is it legal to buy/sell on what appears to be a registered exchange such as MtGox or Bitinstant?
Would a miner be able to sell bitcoins that he/she mined for gold/silver and not be considered a money transmitter?
Would a miner that mined litecoins be able to exchange them for bitcoins on BTC-E?
Putting mining aside for a moment; Is it legal to transfer funds to BTC-E and buy litecoins and eventually exchange them for Bitcoins on BTC-E when the price is right? Then find an exchange such as Bitinstant or MtGox that apparently has registered with FinCEN to sell the bitcoins for USD? Or would someone in the USA, not be able to use BTC-E because they are not registered?
Is it legal to buy/sell on what appears to be a registered exchange such as MtGox or Bitinstant?
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