FinCEN Issues Money Service Business Clarification
On December 27th, CoinText.com reported that FinCEN has issued a clarification to the money service business rules for Bitcoin miners. Individuals and companies who mine Bitcoins for their own accounts will not be considered money service businesses or money transmitters within the meaning of the Bank Secrecy Act. The clarification was outlined in a....
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As financial service firms expand their use of the bitcoin block chain for trading and business activity, the Financial Crimes Enforcement Network (FinCEN) isn't missing a beat. FinCEN, an enforcement arm of the U. S. Department of Treasury, has ruled that companies using the bitcoin block chain to transfer precious metals are considered money transmitters and therefore subject to anti-money laundering restrictions. The ruling came in response to a letter from an unnamed company seeking clarification on this point. FinCEN posted the ruling on its website to serve as guidance to financial....
FinCEN, The US Department of Treasury Financial Crimes Enforcement Network, has issued a ruling that tries to clear up what could be a problem for Bitcoin mining. The problem is explained by whether someone who mines Bitcoins for themselves can trade the Bitcoins for fiat money at an exchange or spend them without being classified as a Money Service Business (which forces the miner to register with FinCEN). Many Bitcoin miners have been concerned that tough regulation from FinCEN would mean that they would have to require an auditor staff, hence making it hard for individuals to mine....
This week, FinCEN ( The Financial Crimes Enforcement Network) passed two rulings that provided clarification on digital currency business models that now must register with FinCEN as a money service business. These businesses are now subject to FinCEN's compliance obligations. It is also known that SEC (the Securities and Exchange Commission) has issued a large amount of action letters to companies in the digital currency sector. Many digital currency companies will need to take both proactive and reactive actions in response to the letters. Also read: SEC Sends Inquiry Letters to Hundreds....
Bitcoin miners who mine "for themselves" do not have to register as Money Services Businesses (MSBs) with the US Financial Crimes Enforcement Network (FinCEN), according to an official letter from the agency this week. FinCEN was replying to a request for clarification by Atlantic City Bitcoin (AC Bitcoin), aka advocate Milly Bitcoin, who maintains an array of ASIC miners in New Jersey. According to the letter, miners are still free to purchase goods or trade with exchanges with the bitcoins they produce whether operating as individuals or businesses. The news should come as a relief for....
In the wake of reports linking the closure of several bitcoin exchanges with recently released guidance by the Financial Crimes Enforcement Network (FinCEN), CoinDesk spoke with Bitcoin Foundation general counsel Patrick Murck about the impact of the FinCEN regulations. (Murck is also a principal and founder of Engage Legal, with expertise in legal and regulatory issues governing the use of bitcoin and virtual economies.) CD: Are you surprised that the regulations are (directly or indirectly) leading to exchange closures? Murch: "No, I'm not surprised. Since long before the guidelines came....