US: FinCEN further clarifies application of money transmission rules to virtual currency

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The Financial Crimes Enforcement Network (a branch of the US Treasury) has published two administrative rulings, providing additional information on whether a person’s conduct related to convertible virtual currency brings them within the Bank Secrecy Act’s (BSA) definition of a money transmitter.

FinCEN confirmed that:

- to the extent a user creates or “mines” a convertible virtual currency solely for a user’s own purposes, the user is not a money transmitter under the BSA; and

- that a company purchasing and selling convertible virtual currency as an investment exclusively for the company’s benefit is not a money transmitter.

The rulings further interpret FinCEN’s March 18, 2013 Guidance to address these business models.

Read the announcement here.

Topics:  Bank Secrecy Act, Bitcoins, FinCEN, Virtual Currency

Published In: Criminal Law Updates, Finance & Banking Updates, Science, Computers & Technology Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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