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.