Bitcoin Forum

New FinCEN report on bitcoin:
http://www.fincen.gov/news_room/speech/pdf/20130416.pdf

Looks good. Haven't had time to read all of it yet but they refer to Bitcoin by name this time, even mentioning all the attention it's getting. Seems they are trying to clarify the earlier guidance.

Nothing new.

Is it the end of unregistered exchanges?

in short they are still looking into it and ensuring all of the FIAT to bitcoin businesses register as money transmitters.

so yea nothing new. all they care about is the fiat side of things

This makes it more of a pain in the rear to operate any kind of Bitcoin/crypto-currency (or other virtual currency) exchange if you're based in the U.S., at least in a complying above ground way.

Thanks for the heads up, doesnt look like anything new but its important to post anything you find.

Makes it easier than operating in Poland though.

Would this apply to anyone who runs bitcoind, even if they are not mining?  And what exactly is meant by transferring a virtual currency from one location to another?  How do you change the location of something that has no physical manifestation?  This borders on the absurd.  It is only information that you are making others aware of.  Next they will issue a ruling that states "Thou shalt not convey certain types of information..."  After that, the book burning will begin.

Exerting more control upon the masses because there is a new player in town:  Cryptocurrency.  They just don't know how to control people who use this cryptocurrency, but are taking their first baby steps at doing so with these so-called "guides". 

Bitcoin was legitimate from the start.  Bitcoin doesn't need to be legitimized by any government.  That is simply more "loser" thinking from people who have been conditioned to rely on corrupt governments and their destructive policies.

People who think this type of guidance is neccassary and good are simply unwitting enemies of economic freedom and don't really know any better. They are fools.

FinCEN forces us to move from pure speculation (USD <--> BTC) to usage bitcoins as a medium of exchange. Why not?

it seems like a decent report

Who cares about fiat money ???

Banksters and zombies.

They actually named Bitcoin this time ;)

Virtual Currencies
In fact, just last month, FinCEN issued interpretive guidance to clarify the applicability of
BSA regulations to virtual currencies, such as Bitcoin, which has in recent weeks gained
significant attention. The guidance responds to questions raised by financial institutions, law
enforcement, and regulators concerning the regulatory treatment of persons who use virtual
currencies or make a business of exchanging, accepting, and transmitting them.

While the dollar isn't "virtual"?  ::)

You need to get out of our cosy geeky virtual world.

Consider it from a practical business POV. The moment you start a business which in some way involves taking some value units (be it fiat or cryptocurrencies) from person A and transmogrify them in a way that at the end of the transaction person B gets some value units, then this regulation applies.

Please note, they are addressing real world business. "They" aren't interested in the stuff we're dreaming.
Once the transacting and exchanging of coins becomes a business, then the existing regulations for any business do apply. This is no surprise.

And why do they act so "arrogant"?
Assuming you're living in a democracy (same for me). Simply, because the majority of people elected a system that works like that. Irrespective of the superficial differentiations in the political orientation of the various parties, any major party affirms this general proceeding. We have law, we have administration and we have an public order.

Any party which wants to break with those basic assumptions has near to zero probability to get even into the parliament. And this is not because of manipulation by aliens or due to mental desease, it is simply because the majority of the population wants it this way. End of discussion.

So now we know that bitcoin is a currency, not e.g. a commodity or a weird mix of both. To their eyes at least.

This is the reason BTCBuy closed down, or went offline. Fuck you fincen.

Consider the price of becoming registered as an MSB. This will likely have a measurable but very small effect on the number of fledgling new exchanges in the U.S. - it is harder to start a new business in a heavily regulated industry.

Examples can be found in farming
1) Some local farms who use organic growing methods do not register as "organic farms" because it costs $3,000 for the certification, which is a lot of money for a small operation.

2) The California almond grower's association (made up of big conglomerates) lobbied the FDA to pass regulation requiring all almonds to be pasteurized (despite virtually 0 food safety concerns regarding raw almonds.) As a result, many small almond farmers were instantly put out of business as they could not afford the $500,000 pasteurization machine that was specifically required.

Overall, this won't effect the bitcoin economy too much. There will always be small start-ups in other jurisdictions, there will always be OTC, and if you're finding capital to start an exchange, a several-thousand-dollar license is not a huge amount compared to the rest of the startup capital you'll have to cough up for servers, datacenter, staff, banking, etc. On the other hand, it could be considered an "unnecessary burden" as it's not like FinCEN regulations have been effective at preventing countless thousands of cases of bankster fraud, nor have they done a particularly good job investigating or holding accountable those who defy regulations. They're basically putting a price tag on useless, ineffective regulatory oversight in a new industry. What else is new?

Oh yes, my prior prediction (that some coin shops could start exchanging bitcoins in the next year or so) could be impacted as many coin shops would not be interested in, or would not be able to afford, the registration process.

It is but a) their ponzi scheme is way more sophisticated and b) we, the bitcoin nation, don't have an army... yet. With nukes... Yet.  ;D

THIS
but since banksters rule the world this bears watching.
"competition is sin"  j.d. rockefeller

they will punish sinners make no mistake about it. they are attacking gold and silver.
bitcoin is now on their radar

Nice, but they still don't understand how Bitcoin system operates, or we don't understand the implications of what their well-thought-through statements.

Which of the following are engaged in transmittance of virtual currency:

a) miners, who verify, secure, and include transactions in the ledger
b) pool operators only, not miners contributing hashes to them
c) anyone running a bitcoin client, relaying transactions

???

Even if they go after pool operators, we have p2pool wich is operated by no one!  ;)

It means that you can be pretty certain to have a way to run a Bitcoin exchange in the US without being thrown in prison for running it.

This report is not really anything new, plus there is jsut a few lines about Bitcoin, the rest being self gratification for the great job the FINCEN is working etc etc.

Plus, as it has been mentioned by several others, this only affects US based operations. The EU is due to update their regulations on E-Currencies any time soon, which will give a better the idea of what the regulatory landscape for exchangers is going to look like over the coming years