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re: US Treasury issues guidance on virtual currencies, regulatory details unclear
Posted on 3/19/13 at 10:13 am to rickgrimes
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.
3
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 10:42 am to WikiTiger
quote:Has anyone on this board said otherwise? I don't recall a single post saying or even suggesting that bitcoins are illegal. It's not illegal, just very risky.
translation: Bitcoins are legal to use
Euros are legal to use in the U.S. also, but any entity which processes, accepts deposits or exchanges euros for dollars will be monitored and/or regulated.
quote:It is the beginning of destroying your infamous "it's all anonymous" meme. Exchanges will be required to report transactions or subject to review of their transactions, especially those over a certain amount.
But here on the Money Board, the histrionics among you will certainly predict its doom.
Sellers of goods or services will become subject to tax reporting regs. That will likely eventually include issuing 1099's for certain services, just as it is now for dollars, for bartered transactions or transactions taking place in a foreign currency.
Exchanges which sell bitcoins will eventually be required to report the cost basis for those bitcoins so when the bitcoin owner sells them or uses them, there will be tax reporting requirements on the profitable gains. That will take a while just because the amount of the transactions now are so miniscule that the government's costs to track those transactions are not worth the tax revenue benefits.
But if bitcoin becomes more significant, those reporting requirements WILL happen. If an exchange refuses to track an individual's use, storage or exchange of bitcoins, that exchange will be shut down.
That's not histronics, those are just facts. So when it happens, where are you going to hide then?
Posted on 3/20/13 at 11:43 am to WikiTiger
the point is, if they are moving to regulate the exchanges, it's only one step away from shutting down the exchanges, which would effectively kill bitcoin. which according to you was impossible.
also
also
quote:attempting to go legit as a currency will likely be the end of bitcoin. legitimacy and anonymity are more or less mutually exclusive. regulation, and therefore an increased ability to track individuals use of bitcoin, will result in it being less appealing to the overwhelming majority of it's current users, whether it be for silk road, poker, kiddie pron, etc. "legitimacy" is not what you want as a bitcoin fan.
many in the bitcoin community who are welcoming this "guidance" because it lends legitimacy to the currency.
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