EU to declare bitcoin as 'overlay currency'

[joepie91]

<genjix> joepie91: there is going to be an EU directive for bitcoin
<joepie91> elaborate?
<genjix> they're going to classify it as an overlay currency
<genjix> but EU directives are slow. they can take months or years (especially with finance)
<genjix> doesn't look like the FSA are going to make any ruling right now, but if they do it's highly speculative what they'll rule bitcoin as (it could be a store of value)
<genjix> joepie91: feel free to attribute that to us.

Posted here on request of genjix

EDIT: For those who can't immediately recall who genjix (Amir Taaki) is, he's part of Bitcoin Consultancy / #bitcoinconsultancy / Britcoin / Intersango. Don't think there's really any other source yet.

[Gabi]

Any link to that?

[mizerydearia]

Any link to that?

https://bitcointalk.org/index.php?topic=41155.msg501859#msg501859  ^_^

[evoorhees]

Help I'm an ignorant American... what is an "overlay currency" in the EU??

[Vladimir]

.

[hugolp]

Any link to that?

https://bitcointalk.org/index.php?topic=41155.msg501859#msg501859  ^_^

Very funny.  I actually felt for that.

[becoin]

Help I'm an ignorant American... what is an "overlay currency" in the EU??

Overlay manager is a firm that is managing your currency hedging against currency exposures, not only in EU. So, currency overlay is the process or practice of hiring such firms. But I've never heard about overlay currency. Bitcoin as 'overlay currency' sounds like overcoin to me.  

[Gabi]

And how that would apply for bitcoin?

[cypherdoc]

Any link to that?

https://bitcointalk.org/index.php?topic=41155.msg501859#msg501859  ^_^

Very funny.  I actually felt for that.

"fell"?

at least "overlay" sounds legal and not illegal.  sounds promising.  buy, buy, buy.

[esse83]

http://en.wikipedia.org/wiki/Currency_overlay - still as confused..

[Gabi]

This definitely do NOT apply for bitcoin

[JackH]

Err how was this information obtained? Did the person talk to FSA or someone in the EU commission? Is there any EU politician or finance ministry that is semi-publicly stating this? And IRC chat log doesnt seem that creditable.

[geek-trader]

It's a rumor.

You buy on the rumor.   

[becoin]

If there is any truth in what OP is suggesting then financial authorities are positioning themselves to regulate and tax bitcoin purchases as cross-border institutional investments.

[Gabi]

I am still wondering how bitcoin can be:

Currency overlay is a financial trading strategy or method conducted by specialist firms who manage the currency exposures of large clients, typically institutions such as pension funds, endowments and corporate entities.

[becoin]

I am still wondering how bitcoin can be:

It is not, but who cares? They need to put you within a certain existing regulatory frame. The rest is just details. Why did you ask FSA for a permission to trade bitcoin in the first place? The only reason I can think of is if you are chasing cheap publicity! If you ask a question you get an answer. Good or bad, this is it. Now you have to do a lot of paper work if you want to stay... hmm... 'legal'. This is not a buy. This is a sell IMHO.

[ElectricMucus]

Currency Overlay in this context would mean the EU would be attempting to manipulate the bitcoin market.

I suspect a troll
hard.

[BitcoinPorn]

joepie91, I would like to subscribe to your newsletter to I don't miss random updates like these

[wareen]

Why did you ask FSA for a permission to trade bitcoin in the first place?

It is important for reputable businesses that Bitcoin gets a solid legal foundation - otherwise they would never consider accepting it as payment. If you want to use Bitcoin in an illegal manner then no legislation can stop you - Bitcoin is no different to cash in this respect.

Now you have to do a lot of paper work if you want to stay... hmm... 'legal'.

Well, legit businesses have to do paperwork anyway - no matter how they treated Bitcoin up until now. With a sound legal basis for Bitcoin they now know at least which paperwork exactly they have to do.

This is not a buy. This is a sell IMHO.

I can't follow your logic here - with Bitcoin fitting into a legal framework, it will be possible for serious businesses to accept it without having to fear any troubles with the law. Bitcoin will just get access to a greater market share - nothing prevents you to continue using Bitcoin like you did up until now if you like, so everybody is a winner here. No?

[defxor]

Err how was this information obtained? Did the person talk to FSA or someone in the EU commission? Is there any EU politician or finance ministry that is semi-publicly stating this? And IRC chat log doesnt seem that creditable.

I'd suggest asking the Pirate Party representative in the EU parliament as a good way of finding out. I don't think the Swedish Pirate Party has an official stance on Bitcoin yet but at least they're not of the boring mainstream politician breed.

http://christianengstrom.wordpress.com/category/english/