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Message
US Treasury issues guidance on virtual currencies, regulatory details unclear
Posted on 3/19/13 at 5:34 am
Posted on 3/19/13 at 5:34 am
quote:
FinCEN, the Financial Crimes Network of the US Treasury, has turned its attention to virtual currencies after releasing a new guidance note on the management and usage of virtual currencies like Bitcoin, Facebook Credits and others. However, precise details of its scope of regulation remain undefined.
FinCEN has provided some details (and, in doing so, uncertainty) around the status of the new currencies, and their users and operators. The missive explains that users of virtual currencies are not classified as MSB (money services businesses, which fall under FinCEN regulation), but those that manage exchanges or currencies are.
At this stage, this clarification does not have any initial impact on the Bitcoin ecosystem. FinCEN clarifies that the response is “not in the form of an administrative ruling” but it does remind ‘administrators’ and ‘exchangers’ — such as YC-backed Coinbase — that they fall under US law, if they are based in the US.
Like many things on the Internet, the location issue is tricky given that Bitcoin is not bound by geography like ‘real’ currencies. It remains to be seen how the Treasury would address overseas virtual currency operators that have significant traction in the US, that could be an issue for the future.
Bitcoin is seen as being the most disruptive virtual currency — Mega founder Kim Dotcom is a big fan, and wants a Bitcoin credit card — but the guidance also applies to virtual credits, such as those operated by Facebook and a range of entertainment and online games firms.
The FinCEN letter certainly doesn’t provide all the answers, but it does show that the government has an eye on the space.
LINK
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Posted on 3/19/13 at 5:46 am to rickgrimes
You can't stop Bitcoins motherfricker 
Posted on 3/19/13 at 7:21 am to rickgrimes
quote:paging wiki. gosh i just hate being right...
but those that manage exchanges or currencies are
Posted on 3/19/13 at 7:34 am to el duderino III
The people at the top have already made theirs and disappeared.
Posted on 3/19/13 at 7:35 am to el duderino III
quote:
gosh i just hate being right...
I love the hyperbole of you people. Last week during the unintentional blockchain fork, y'all were predicting doom. One guy was like, "This is really bad even though you won't admit it." And yet, less than a week later, bitcoin has broken through another all-time high and is exchanging at $54.
And this regulatory guidance isn't a big deal either. It has pretty much no effect on users. I don't think anyone ever doubted that the exchanges would be regulated. In fact, most every exchange, even the foreign ones, have been following the laws already.
So...what exactly were you right about? And let me guess, this is also going to spell doom for bitcoin as well?
I can't wait for the fun in this thread today.
Posted on 3/19/13 at 8:00 am to WikiTiger
You have repeatedly claimed that there was no way bitcoin could be regulated.
Posted on 3/19/13 at 8:09 am to LSURussian
(no message)
This post was edited on 12/21/21 at 9:38 am
Posted on 3/19/13 at 8:21 am to XanderCrews
You're right. My bad. I try to stay out of political discussions on this board.
I lost my head in the fog of battle.....
I lost my head in the fog of battle.....
Posted on 3/19/13 at 8:34 am to rickgrimes
quote:
US Treasury issues guidance on virtual currencies, regulatory details unclear
God, I don't look forward to when FinCEN finally figures out a way to truly regulate Bitcoins. It's going to make my job a living nightmare.
Posted on 3/19/13 at 9:06 am to WikiTiger
BCMF
Posted on 3/19/13 at 9:15 am to LSURussian
quote:
You have repeatedly claimed that there was no way bitcoin could be regulated.
Yup.
Bitcoin is virtual musical chairs. Last one standing loses.
Posted on 3/19/13 at 9:17 am to ItNeverRains
quote:
The people at the top have already made theirs and disappeared.
You mean SamsungToyotaNissan or whatever the head guys name is?
Posted on 3/19/13 at 9:30 am to Broke
I ask all you experts:
What effect does this "guidance" have on bitcoin?
What effect does this "guidance" have on bitcoin?
Posted on 3/19/13 at 9:36 am to WikiTiger
It is the toe-in-the-water to regulate bitcoin. Other governments will follow and there will be a unified approach to the regulations.
Posted on 3/19/13 at 9:49 am to LSURussian
No Unicorn Fart regulations, thank God.
Posted on 3/19/13 at 9:52 am to LSURussian
quote:
Other governments will follow and there will be a unified approach to the regulations.
Which actually pisses me off some. Let's not give credibility to this shite.
Posted on 3/19/13 at 9:52 am to Vols&Shaft83
quote:
No Unicorn Fart regulations, thank God.
Hope the EPA doesn't get involved
Posted on 3/19/13 at 10:13 am to rickgrimes
here's the actual "guidance": https://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
Let's summarize it:
translation: Bitcoins are legal to use
translation: bitcoin mining is legal and is not regulated. exchanges need to follow relevant regulation. more clarification needed on whether or not a miner selling to an exchange would be considered an MSB.
whoopity do.
FWIW, there are many in the bitcoin community who are welcoming this "guidance" because it lends legitimacy to the currency.
But here on the Money Board, the histrionics among you will certainly predict its doom.
Let's summarize it:
quote:
A user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not an MSB under FinCEN's regulations.8 Such activity, in and of itself, does not fit within the definition of "money transmission services" and therefore is not subject to FinCEN's registration, reporting, and recordkeeping regulations for MSBs.9
translation: Bitcoins are legal to use
quote:
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.
translation: bitcoin mining is legal and is not regulated. exchanges need to follow relevant regulation. more clarification needed on whether or not a miner selling to an exchange would be considered an MSB.
whoopity do.
FWIW, there are many in the bitcoin community who are welcoming this "guidance" because it lends legitimacy to the currency.
But here on the Money Board, the histrionics among you will certainly predict its doom.
Posted on 3/19/13 at 10:28 am to WikiTiger
Honesty I don't give a crap whether BitCoins survive or not. I just wanted to get a conversation going seeing as how this board loves the subject and people are so opinionated about it.
A few weeks ago I installed a miner in my MacBook Air thinking I will mine some coins myself. Bad idea. The miner almost made my little laptop catch on fire. I have never heard the fans spin so fast. I had no idea of the kind of computing rig one would need for this to work. After doing more research I decided that this whole thing wasn't for me and that I am a few years late to the game to try to make a quick gain and get out.
A few weeks ago I installed a miner in my MacBook Air thinking I will mine some coins myself. Bad idea. The miner almost made my little laptop catch on fire. I have never heard the fans spin so fast. I had no idea of the kind of computing rig one would need for this to work. After doing more research I decided that this whole thing wasn't for me and that I am a few years late to the game to try to make a quick gain and get out.
This post was edited on 3/19/13 at 10:33 am
Posted on 3/19/13 at 10:31 am to rickgrimes
quote:
onesty I don't give a crap whether BitCoins survive or not. I just wanted to get a conversation going seeing as how this board loves the subject and people are so opinionated about it.
I apologize if it seemed like I was ripping on you for posting this. I'm glad you posted it, and if you had not have done it, I was planning on it. So thanks.
It's worthy of discussion, but in the end I just think it's much ado about nothing, much like last weeks blockchain fork.
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