Are Mt. Gox & other exchanges going to be considered FFIs & if so what effect?

[Otoh]

Reporting by Foreign Financial Institutions

FATCA will also require foreign financial institutions (“FFIs”) to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. To properly comply with these new reporting requirements, an FFI will have to enter into a special agreement with the IRS by June 30, 2013. Under this agreement a “participating” FFI will be obligated to:

(1) undertake certain identification and due diligence procedures with respect to its account holders;

(2) report annually to the IRS on its account holders who are U.S. persons or foreign entities with substantial U.S. ownership; and

(3) withhold and pay over to the IRS 30-percent of any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate U.S. source income, made to (a) non-participating FFIs, (b) individual account holders failing to provide sufficient information to determine whether or not they are a U.S. person, or (c) foreign entity account holders failing to provide sufficient information about the identity of its substantial U.S. owners.

Or in reality will this latest BS just apply to banks, insurers & funds, etc

[Stephen Gornick]

Or in reality will this latest BS just apply to banks, insurers & funds, etc

Exchanges such as Mt. Gox allow trading between fiat currencies and bitcoins.  This is not an investment which pays interest or dividends.  The funds only get conversion to and from bitcoins and possibly causes gains or losses if the trading is for the pursuit of profit.  

19. Are foreign exchange transactions subject to FATCA?

We do not believe that withholdable payments will include foreign exchange (FX) payments. Although gain on such contracts is generally reported as gross proceeds, the FATCA rules appear to only apply to proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States. This could be changed by regulations.


20. Are remittances subject to FATCA (i.e. someone in U.S. sends money to a family member
in my country)?
No, the mere transfer of money from someone in the U.S. to someone in a foreign country will not trigger FATCA withholding. However, money transferred into, and income earned in, a U.S. account may be subject to the FATCA reporting requirements. Further, instr

 - www.deloitte.com/assets/.../us_tax_FATCA_FAQs_061711.pdf


Either this is considered foreign exchange or it is simply a market for the buying and selling of a commodity, of which both definitions are not what FATCA covers.

Now if an exchange, such as Mt. Gox, were to offer interest on your balance, that might be treated differently.