Topic: FinCEN addresses Bitcoin - page 13. (Read 28359 times)
It can be interpreted differently, of course. But I think miners that sell bitcoins via exchanges are not subject to the regulation. The exchanges in this case would be acting as an intermediary that you farm out "money transmitter" functions to. Otherwise, you would become "money transmitter" every time you make international (with currency exchange) wire transfer via SWIFT network to a third party.
If I read that right about 5 or so business I can think of, are in violation of U.S laws.
If I read it right, miners that sell to exchanges and others, all decentralized dealers and processors are subject to their expected claim of regulation - pretty much the entire bitcoin community minus just spenders/users.
What actually matters will be their first attempted enforcement of their claim.
In short - the US Treasury confirms that Bitcoin and its cousins are legitimate enough to require regulation. This is big news.
What is funny is we don't "create" the virtual currency. We mine it ("find it"). You can create fiat, but not bitcoins. This means FinCen's statement on de-centralized currencies don't apply to bitcoin.
However, Ripple creates their own currencies so it applies to Ripple.
However, Ripple creates their own currencies so it applies to Ripple.
They say that if you mine Bitcoins and use them to buy stuff you are not "money transmitter".
If someone mines bitcoins and sells them for fiat directly (not via an excahnge) he or she is a "money transmitter".
If you run a Bitcoin exchange with fiat component involved i.e. you trade BTCUSD, BTCEUR etc... (mtgox, bitstamp etc) then you are an exchange and a money transmitter.
If you run a Bitcoin exchange without fiat component involved, for example, you trade only Bitcoins and Litecoins then you are not a money transmitter.
If someone mines bitcoins and sells them for fiat directly (not via an excahnge) he or she is a "money transmitter".
If you run a Bitcoin exchange with fiat component involved i.e. you trade BTCUSD, BTCEUR etc... (mtgox, bitstamp etc) then you are an exchange and a money transmitter.
If you run a Bitcoin exchange without fiat component involved, for example, you trade only Bitcoins and Litecoins then you are not a money transmitter.
If I read that right about 5 or so business I can think of, are in violation of U.S laws.
If I am reading this correct anyone who sells bitcoins is now required to register? WOW
Glade I am covered
If I am reading this correct anyone who sells bitcoins is now required to register? WOW
Glade I am covered
FIN-2013-G001
Issued: March 18, 2013
Subject: Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies
fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
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.
Issued: March 18, 2013
Subject: Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies
fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
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.
Jump to: