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Author Topic: IMPORTANT: US Bitcoin miners may have to register as Money Services Businesses.  (Read 1244 times)
AHumbleMessenger
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March 19, 2013, 05:38:27 AM
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Basically money transmitters are regulated as MSBs. MSBs require registration by FinCEN and they are considering people who mine Bitcoins for US dollars as such.

"A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized 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."

A person is defined as this, even if they are an MSB:

"FinCEN’s regulations define “person” as “an individual, a corporation, a partnership, a trust or estate, a joint stock company, an association, a syndicate, joint venture, or other unincorporated organization or group, an Indian Tribe (as that term is defined in the Indian Gaming Regulatory Act), and all entities cognizable as legal personalities.”

http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
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AHumbleMessenger
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March 19, 2013, 05:55:35 AM
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I just called my accountant and he confirmed this. Sad I am shutting down.
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March 19, 2013, 06:23:08 AM
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Nah, mining is just doing tons of sha256 and finding the right nonce, also bitcoin isn't money, it is worthless, isn't it?  Cheesy
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March 19, 2013, 06:37:54 AM
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I just called my accountant and he confirmed this. Sad I am shutting down.
Careful, uncle sam is going to arrest you Grin
odolvlobo
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March 19, 2013, 06:53:46 AM
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As suggested in another thread, a miner just has to spend the bitcoins on stuff, like gold and silver bullion, to avoid being classified as a money transmitter.

Buy bitcoins with cash from somebody near you: LocalBitcoins
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AHumbleMessenger
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March 19, 2013, 07:08:42 AM
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As suggested in another thread, a miner just has to spend the bitcoins on stuff, like gold and silver bullion, to avoid being classified as a money transmitter.

Precious metals are regulated as money. They probably are considered money.
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March 19, 2013, 07:17:48 AM
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As suggested in another thread, a miner just has to spend the bitcoins on stuff, like gold and silver bullion, to avoid being classified as a money transmitter.

Precious metals are regulated as money. They probably are considered money.

Precious metals are not considered real currency or convertible virtual currency by FinCEN (except for the gold and silver legal tender coins). That's what counts here.

Buy bitcoins with cash from somebody near you: LocalBitcoins
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AHumbleMessenger
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March 19, 2013, 07:24:42 AM
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As suggested in another thread, a miner just has to spend the bitcoins on stuff, like gold and silver bullion, to avoid being classified as a money transmitter.

Precious metals are regulated as money. They probably are considered money.

Precious metals are not considered real currency or convertible virtual currency by FinCEN (except for the gold and silver legal tender coins). That's what counts here.

It might be more broad than that:

http://www.fincen.gov/statutes_regs/guidance/html/faq060305.html
Dreaser
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March 19, 2013, 09:47:31 AM
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Theres a good write up at bitcoin magazine explaining the recently proposed guidelines from FINCEN
http://bitcoinmagazine.com/fincen-bitcoin-users-not-regulated-exchanges-are/

not sure how this will pan out for miners, but it legitimizes the use of bitcoin for the buying of goods and services so thats gotta be good
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March 19, 2013, 10:11:05 AM
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How can they tell you mined coins Huh

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March 19, 2013, 12:01:57 PM
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How does this effect mining pools, or does it?
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March 19, 2013, 05:07:58 PM
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bumping
DeathAndTaxes
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March 19, 2013, 05:10:43 PM
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Well no.  Those are regs on a DEALER of precious metals.  Someone buying precious metals (other than a dealer) isn't subject to reporting requirements.  The reporting requirements are on the dealer.  By your logic USD is currency therefore everyone in the US walking into a coin shop to trade $30 USD for 1 oz of silver is a MSB and has been in violation of the law.
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