These new rulings will affect many merchants also.

I suspect it will take a few days before the realizations sinks in as to what has happened.

I think there is the possibility that this could be the end of the road for cryptocurrencies in the USA, from a practical standpoint.

The rulings from today will actually affect merchants in new and much broader ways. For example, in many cases, a company will no longer be allowed to pay wages in Bitcoin without registering as a money transmitter.

According to these new rulings, there is the possibility that a business paying its employees in cryptocurrency (under certain circumstances) would be subject to the money transmitter requirements.

I suspect it will take a few days for the gravity of this new development to be fully appreciated and understood.

The Financial Crimes Enforcement Network (FinCEN) today issued two administrative rulings regarding digital currency. And the government has apparently decided to go with the nuclear option.

The first ruling published today relates to the application of FinCEN regulations to a virtual currency trading platform, while the second ruling discusses the application of FinCEN regulations to a virtual currency payment system.

In ruling FIN-2014-R011, FinCEN states that any and all cryptocurrency exchanges must become licensed as a money transmitter including crypto-only exchanges:

"As explained in the Guidance, a person is an exchanger and a money transmitter if the person accepts 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."

In ruling FIN-2014-R012, the agency confirms that any and all payment processors are obliged to register as money transmitters, significantly increasing the cost of entry in becoming a digital payments provider.

"As described above, the Company is an exchanger under the Guidance because it engages as a business in accepting and converting the customer’s real currency into virtual currency for transmission to the merchant. The fact that the Company uses its cache of Bitcoin to pay the merchant is not relevant to whether it fits within the definition of money transmitter."

Once labeled a money transmitter, a business wishing to continue operating must pay hundreds of thousands of dollars to become licensed in each of the 50 states. And that’s only the beginning of the regulatory costs and legal hoop jumping.

In addition, companies are required to register with FinCEN, conduct a comprehensive risk assessment of its exposure to money laundering, implement an Anti-Money Laundering Program based on such risk assessment, and comply with various record keeping, reporting and transaction monitoring obligations, in addition to meeting several other requirements.

It is interesting to note that the government classifies Bitcoin as a digital “property” for taxation purposes, but as a digital “money” for regulatory and licensing purposes.

Full Story: http://altcoinpress.com/2014/10/fincen-ruling-us-government-ramps-up-war-on-cryptocurrency/

This is the most devastating news to strike Bitcoin since the time Satoshi disappeared with over 1 million BTC.

Actually, according to these new rulings, there is the possibility that a business paying its employees in Bitcoin (under certain circumstances) would be subject to the money transmitter requirements. I suspect it will take a few days for the gravity of this new development to be fully appreciated and understood.

I never realized how heavily censored the coindesk.com comment section was until tonight.


Deleted (no links or anything. lol) ^^^^^^^^^^^^

Hmmm. Maybe I just have a conspiracy complex.  

The Financial Crimes Enforcement Network (FinCEN) today issued two administrative rulings regarding digital currency. And the government has apparently decided to go with the nuclear option.

The first ruling published today relates to the application of FinCEN regulations to a virtual currency trading platform, while the second ruling discusses the application of FinCEN regulations to a virtual currency payment system.

In ruling FIN-2014-R011, FinCEN states that any and all cryptocurrency exchanges must become licensed as a money transmitter including crypto-only exchanges:

"As explained in the Guidance, a person is an exchanger and a money transmitter if the person accepts 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."

In ruling FIN-2014-R012, the agency confirms that and and all payment processors are obliged to register as money transmitters, significantly increasing the cost of entry in becoming a payment service provider.

"As described above, the Company is an exchanger under the Guidance because it engages as a business in accepting and converting the customer’s real currency into virtual currency for transmission to the merchant. The fact that the Company uses its cache of Bitcoin to pay the merchant is not relevant to whether it fits within the definition of money transmitter."

Once labeled a money transmitter, a business wishing to continue operating must pay hundreds of thousands of dollars to become licensed in each of the 50 states. And that’s only the beginning of the regulatory costs and legal hoop jumping.

In addition, companies are required to register with FinCEN, conduct a comprehensive risk assessment of its exposure to money laundering, implement an Anti-Money Laundering Program based on such risk assessment, and comply with various record keeping, reporting and transaction monitoring obligations, in addition to meeting several other requirements.

It is interesting to note that the government classifies Bitcoin as a digital “property” for taxation purposes, but as a digital “money” for regulatory and licensing purposes.

Full Story: http://altcoinpress.com/2014/10/fincen-ruling-us-government-ramps-up-war-on-cryptocurrency/

Somebody must have turned out the lights.  

Franko of course! 

ALTCoin Press is now getting about 50K visitors per month and I thought it would be cool to give back to the community. Well, it may help me too if things work out as expected!

About 8 months ago, I made the following subreddit: http://www.reddit.com/r/altcoinforum/ Then I basically, left it unused for 8 months. Today I had an idea on how to revive it by putting a Reddit widget in the sidebar of http://altcoinpress.com/ displaying the top 5 upvoted posts (see below).



That widget (now installed) will get 50,000+ monthly page views. Since there are currently only 14 subscribers, it should be quite easy to get your link or comment upvoted into the top 5. That means a huge chunk of exposure at no cost for your thoughts, idea, etc.

Please feel free to comment below with your ideas and suggestions.

The controversial altcoin exchange mcxNOW has just announced that it will be closing for maintenance November 15th to address problems with the exchange’s wallets.

Today, a notice appeared on the company’s homepage saying that customers should withdrawal their coins before the deadline or risk losing them forever.

"All wallets here will be removed to make way for a new wallet system meaning you will need to withdraw all your cryptocurrency holdings prior to this cutoff point. Any coins left in mcxNOW at the cutoff point will be destroyed."

The announcement also states that some currently supported coins will not return.

"Existing wallets and all backups are going to be shredded to maintain privacy of users. Some coins currently on mcxNOW will not return. Thank you for your patience while we try to keep mcxNOW one of the best platforms for cryptocurrency.'

A discussion thread on bitcointalk.org created by usahero is questioning the timing and motives of the site's administrator.

"The scam site known for selling illegal securities, insider trading, money laundering, verbally abusing its clients and leading a cult-like long term scam conspiracy, is temporarily closing its doors due to incompetence of the main administrator and site creator."

Yesterday, it was reported the company had recently lost 350 million dogecoin (worth $85,000) due to its failure to update exchange wallets before the client update. The exchange, which is popular with MaxCoin traders, is operated by an individual using the online moniker 'RealSolid'. Very little is known about this person other than he is based in Australia.

Full Story: http://altcoinpress.com/2014/10/crypto-exchange-mcxnow-to-shred-customer-wallets/

California businessman and cryptocurrency trader, Skye Bonow, has decided to file suit against the world’s #1 altcoin exchange, Cryptsy, after having his own personal computer compromised.

In court documents filed yesterday in the 15th Judicial Court of Florida, Silver Law Firm alleges that Cryptsy violated the state’s Deceptive and Unfair Trade Practices Act by failing to provide critical information regarding security risks and customer fund management protocols.

Cryptsy founder, Paul Vernon, in a blog post today called the charges baseless and believes the timing of the news is part of a carefully orchestrated PR campaign aimed at a financial settlement.

He encouraged the site’s 300,000+ users to keep their computers safe at all times and provided several security tips.

"In this case the attack on the user making the claim came from within their own computer. This is currently one of the most common attacks by hackers. While we try to educate our users on how to secure their local environment, we ultimately have no control of a user's computer system."

Bonow, according to the court filing, lost 140 BTC in January after his exchange account was drained through a series of internal transfers and cryptocurrency trades, made by the hacker, on the Cryptsy trading platform. At the time of the loss, the bitcoins were valued at approximately $112,000.00.

Apparently, the plaintiff was previously unaware that passwords stored on personal computers can be used by hackers to access financial records and online trading accounts.

Full Story: http://altcoinpress.com/2014/10/california-man-has-computer-hacked-then-blames-crypto-exchange/

FLORIDA – Tampa based exotic strip club, 2001 Odyssey, is now offering its online customers the ability to remotely release physical cash down onto live strippers, as they dance on the main stage, using Bitcoin.

“I think Tampa may be breaking new ground with this,” said Glen Gilmore, a consultant and digital marketing professor at Rutgers University. Gilmore sees it as a major shift in marketing.

“It’s a dramatic shift in marketing, and I guess what’s happening in Tampa just reinforces the fact that traditional marketing is yielding to new media and new marketing.”

Thanks to its partnership with BitPay, the “Make It Rain Machine” allows the club's online customers to drop as much as $100.00 at a time in crypto-paid dollars from 2001’s ceiling onto its gyrating dancers. Online tippers get to watch live as the cold hard cash falls down on the appreciative performers.

Rolling thunder sound effects accompany the fiat shower while the DJ announces the rainmaker’s name and dedication. The club manager and DJ can also be tipped over the web using Bitcoin.

In the 5,000-square-foot club, cameras are mounted above the dressing room’s entrance watching the women apply makeup and changing their lingerie. Another sits above the main stage not far from the neon signs hailing the “Make It Rain Machine.”

Full Story: http://altcoinpress.com/2014/10/use-bitcoin-to-remotely-rain-physical-cash-down-onto-live-strippers/

Yesterday, during an interview with Jason Burack, host of the YouTube program WallStForMainSt, Overstock.com CEO Patrick Byrne, predicted that within 7 to 8 years cryptocurrency would rock the very foundations of the World.

During the YouTube Interview, the Indiana-born entrepreneur discusses a wide range of topics – from his fear of being “locked up” in prison – to his vision of how digital currency will alter life as we know it.

Candidly sharing his thoughts about jail, Byrne said:

"I have ticked off a lot of people in Washington. So I took up yoga the last few years, because it’s the only sport you can do in a jail cell."

In regards to cryptocurrency, the CEO had this to say:

"The people that are involved in Crypto (have a sense) that this will be bigger than the Internet. It could be a bigger change for society than the Internet itself."

Many of Patrick’s comments resonated with my vision of the future landscape, and serve to reinforce my belief that alternative currencies are the wave of the future.

This writer can envision the day where Goldcoin (GLD) is the number one cryptocurrency around the globe, bringing freedom and independence to a corrupted system previously controlled by the banking elite.

Patrick M. Byrne is the CEO of the Internet retailer Overstock.com. Byrne received his B.A. from Dartmouth, studied at Cambridge University as a Marshall Scholar, and earned a PhD in Philosophy from Stanford University. He co-founded Overstock.com in 1997 and became CEO in 1999.

Full Story: http://altcoinpress.com/2014/10/patrick-byrne-cryptocurrency-will-be-bigger-than-the-internet-itself/

SnapCard hopes to convert San Francisco into the Crypto City by the Bay, as it brings two altcoins out of the closet and into plain sight with its massive 500 POS terminal giveaway, beginning next month.

The digital currency payment provider has decided to give 500 merchants in the San Francisco area the equipment required to accept Bitcoin and other cryptocurrencies at no cost. The company announced its promotional campaign today, which will give away free tablet-based point-of-sale (POS) systems to participating merchants throughout November.

SnapCard operations manager, Jack Jia, said today that the region’s longstanding association with digital currency startups makes it the perfect place for the ambitious project, stating:

“SnapCard is headquartered in San Francisco and with thousands of local ‘bitcoiners’ and millions of international visitors flocking into San Francisco, we feel that starting locally is the best first step for us as we embark on a campaign to increase international awareness of digital currencies.”

The Android-based terminals allow merchants to accept Bitcoin (BTC), Litecoin (LTC), and Dogecoin (DOGE). Once the terminals are installed in merchant locations, future software updates will allow merchants to expand the number of altcoins accepted.

Considering the city’s rich gold history, it’s only natural to expect the San Fransisco natives to demand a Goldcoin (GLD) update to the terminals over the coming months.

San Francisco, officially the City and County of San Francisco, is the cultural center and a leading financial hub of the San Francisco Bay Area and Northern California. The California Gold Rush of 1849 brought rapid growth, making it the largest city on the West Coast at the time.

Full Story: http://altcoinpress.com/2014/10/san-francisco-crypto-fans-happy-and-gay-after-snapcard-announcement/

Today, BitPay’s Chief Compliance Officer, Tim Byun, submitted his company’s response to the New York Department of Financial Services’ (NYDFS) proposed regulations for virtual currency businesses, also known as BitLicense.

Ben Lawsky, New York’s Superintendent of Financial Services, is spearheading new legislation that would create an unlevel playing field for Bitcoin and other cryptocurrencies. The BitLicense would essentially handicap Bitcoin and make it both impractical and embarrassing to use. The restrictions would basically paint Bitcoin users as suspicious cyber criminals.

Byun appealed to Superintendent Lawsky for common sense in today’s letter:

"Eliminate the need for names, account numbers, and physical address to be collected for each transaction. Merchants on Broadway do not collect such information for each transaction whether via cash for a hotdog or via debit cards to attend a show."

The BitPay letter wisely points out four key areas where the proposed New York regulation misses the mark. But the identity requirement alone is a deadly silver bullet that Lawsky and his banker puppet masters intend to fire directly into the heart of digital currency adopters across the Empire State.

Byun understands the urgency of the situation and in his blog post today encouraged the entire cryptocurrency community to take a stand now against these new regulations before it's too late.

"If you have not submitted your comments to the NYDFS during this comment-period, we strongly suggest you do so during the next comment-period, as every voice represents a bitcoin-related entrepreneur, industry, or innovation."

To voice your opinion and speak out on behalf of Bitcoin and digital currencies around the globe, the Electronic Frontier Foundation has created a website that explains how you can help - before the hammer falls. https://act.eff.org/action/stop-the-bitlicense

Full Story: http://altcoinpress.com/2014/10/bitpay-asks-for-help-in-saving-bitcoin-from-banker-puppet-ben-lawsky/

Yes. The block target interval was suitable then. But let's face it, Bitcoin is a different beast now.  

Loosing Bitcoins with an online wallet provider will always carry risks. But with Blockchain, I think the odds of them losing your coins are negligible. Paper wallets are a nice way to store Bitcoins if you're concerned about security.