Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[elux]

By JEFFREY SPARSHOTT
WASHINGTON—The top U.S. anti-money-laundering regulator on Monday told a Bitcoin trade group that exchanges for the virtual currency must follow the same rules as established financial institutions, highlighting the government's efforts to keep tabs on a small but growing segment of the financial world.

The Treasury Department's Financial Crimes Enforcement Network, or Fincen, hosted the Bitcoin Foundation and other regulators and law-enforcement officials as the sides grapple with the rise of virtual currencies. Such digital money isn't backed by a central government and often, as with Bitcoin, isn't controlled by any central entity.

"Fincen's recent guidance concerning virtual currencies made clear that virtual currency administrators and exchangers that provide services within the U.S. must register with Fincen as money-services businesses and that they share similar regulatory responsibilities with other financial institutions,"
said Jennifer Shasky-Calvery, director of the Treasury Department's Financial Crimes Enforcement Network, in a statement after the meeting.

Ms. Shasky's comments to the foundation repeat earlier messages. Fincen in March published guidelines that placed virtual-currency exchanges under the same broad anti-money-laundering requirements as traditional money-transmission businesses such as Western Union Co.

The move followed rising concern that the currencies, which allow anonymous transactions, could be used for illicit purposes.

Ms. Shasky described Monday's meeting as part of an "ongoing dialogue" with regulated financial industries and said she looked forward to further communication.

Before the meeting, Patrick Murck, general counsel for the Bitcoin Foundation, said he would make a presentation and answer questions from government officials.

The trade group and some Bitcoin companies say they support efforts to ensure that the industry is operating in compliance with certain laws. They contend that will help legitimize the fledgling industry and keep out bad players who want to use the currency for illegal activities.

Monday's event in part grew out of a June virtual currency conference in Washington, D.C., where Ms. Shasky met with investors and industry officials, and told them that they had nothing to fear from the government as long as they followed U.S. financial rules.

The Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Internal Revenue Service, Federal Bureau of Investigation, Secret Service, Securities and Exchange Commission and others joined Monday's session.

—Robin Sidel contributed to this article.

http://online.wsj.com/article/SB10001424127887323407104579037301852662422.html

Hmm... Seems promising, on the face of it.

Full article: http://webcache.googleusercontent.com/search?q=cache:http://online.wsj.com/article/SB10001424127887323407104579037301852662422.html

[Walsoraj]

... they had nothing to fear from the government as long as they followed U.S. financial rules.

^could be problematic for most, if not all, companies currently involved in bitcoin. First, it is super expensive. Second, who knows what those recent 20+ subpoenas will reveal. Would anyone be surprised if the regulatory bodies determine that no current bitcoin-related companies have adequate KYC and anti money laundering procedures in place?

[Walsoraj]

Fincen's recent guidance concerning virtual currencies made clear that virtual currency administrators and exchangers that provide services within the U.S. must register with Fincen as money-services businesses and that they share similar regulatory responsibilities with other financial institutions

She still doesn't understand, that there are no administrators. Just like with internet laws. It will take many years for government to understand the difference between banks and bitcoin.

All miners, register as money transmitters!

Yes there are. You are reading the definition wrong. "administrator" and "Exchanger" definitions only apply to those "engaged in businesses." Read the guidance opinion again. Focus on the initial definitions near top. Those below are clarifications and meant to be interpreted in light of the broader outlined def'n.

^i paid lawyer, he told me that

[ChartBuddy]

[ChartBuddy]

[romerun]

syria is responsible for the current rally apparently

[el_rlee]

syria is responsible for the current rally apparently

src?

[Odalv]

syria is responsible for the current rally apparently

I think the price is affected by the ants and their effect on the corrosion of the earth's axis

[derpinheimer]

400 coins between 125 and 118... lol

[MonadTran]

syria is responsible for the current rally apparently

src?

Might make some sense: http://www.marketwatch.com/story/syria-intervention-fears-hit-global-markets-2013-08-27

Stocks drop, maybe due to some Syria news, maybe not, maybe people are using some Syria news to rationalize their irrational behavior. Anyway, there's a selloff on the stock market, where does the money go? Might as well go our way.

[Walsoraj]

syria is responsible for the current rally apparently

src?

Might make some sense: http://www.marketwatch.com/story/syria-intervention-fears-hit-global-markets-2013-08-27

Stocks drop, maybe due to some Syria news, maybe not, maybe people are using some Syria news to rationalize their irrational behavior. Anyway, there's a selloff on the stock market, where does the money go? Might as well go our way.

The money goes to fiat and stays there until the future is less uncertain.

[romerun]

gold rises a bit too and btc is the new gold

[NewLiberty]

... they had nothing to fear from the government as long as they followed U.S. financial rules.

^could be problematic for most, if not all, companies currently involved in bitcoin. First, it is super expensive. Second, who knows what those recent 20+ subpoenas will reveal. Would anyone be surprised if the regulatory bodies determine that no current bitcoin-related companies have adequate KYC and anti money laundering procedures in place?

KYC is not really that hard or expensive.  There are service desks that will do it for you for a few bucks a customer.  Perhaps it is the non-monetary costs that have been more daunting?

[molecular]

syria is responsible for the current rally apparently

src?

Might make some sense: http://www.marketwatch.com/story/syria-intervention-fears-hit-global-markets-2013-08-27

Stocks drop, maybe due to some Syria news, maybe not, maybe people are using some Syria news to rationalize their irrational behavior. Anyway, there's a selloff on the stock market, where does the money go? Might as well go our way.

indeed could make some sense. money flows to gold/silver/bitcoin.

[Coinseeker]

... they had nothing to fear from the government as long as they followed U.S. financial rules.

^could be problematic for most, if not all, companies currently involved in bitcoin. First, it is super expensive. Second, who knows what those recent 20+ subpoenas will reveal. Would anyone be surprised if the regulatory bodies determine that no current bitcoin-related companies have adequate KYC and anti money laundering procedures in place?

KYC is not really that hard or expensive.  There are service desks that will do it for you for a few bucks a customer.  Perhaps it is the non-monetary costs that have been more daunting?

It's actually the fees and bonds to get registered in the individual states thats a problem. Estimates are as high as $7 million and at least a year to be within compliance in all 50 states.  Maybe you could get it in a year and that's if you spend tons more on a team of great lawyers.

[ChartBuddy]

[bitcodo]

... they had nothing to fear from the government as long as they followed U.S. financial rules.

^could be problematic for most, if not all, companies currently involved in bitcoin. First, it is super expensive. Second, who knows what those recent 20+ subpoenas will reveal. Would anyone be surprised if the regulatory bodies determine that no current bitcoin-related companies have adequate KYC and anti money laundering procedures in place?

KYC is not really that hard or expensive.  There are service desks that will do it for you for a few bucks a customer.  Perhaps it is the non-monetary costs that have been more daunting?

It's actually the fees and bonds to get registered in the individual states thats a problem. Estimates are as high as $7 million and at least a year to be within compliance in all 50 states.  Maybe you could get it in a year and that's if you spend tons more on a team of great lawyers.

Yes, just wanted to write that. http://thegenesisblock.com/town-hall-discussion-with-gavin-andresen-and-patrick-murck/

syria is responsible for the current rally apparently

src?

Might make some sense: http://www.marketwatch.com/story/syria-intervention-fears-hit-global-markets-2013-08-27

Stocks drop, maybe due to some Syria news, maybe not, maybe people are using some Syria news to rationalize their irrational behavior. Anyway, there's a selloff on the stock market, where does the money go? Might as well go our way.

indeed could make some sense. money flows to gold/silver/bitcoin.

You can't just decide to invest in BTC in a minute. It takes many days. Not $ flowing in. Just $ from mtgox to BTC.

And I really don't read it as so good. You need to obey all USA rules - they said this before - nothing new. Again, pay 7M$, wait 1 year and do your business - not so good. And still we just have exchanges, mining, SilkRoad and gambling - nothing new.

Lift-off commencing!  

http://www.youtube.com/watch?v=D67kmFzSh_o

[ChartBuddy]

[herzmeister]

rallying because WW3 will require heavy money printing

[ChartBuddy]