Bankers Ask Fed to Regulate Bitcoin

[MicroGuy]

In a recently released meeting summary, of the Federal Advisory Council (FAC), which is composed of twelve representatives of the banking industry, it became clear that their agenda moving forward will include the regulation of cryptocurrencies.

While the bankers do not yet perceive Bitcoin and other digital currencies as viable competitors to their financial monopoly, the bankers did state that Bitcoin “regulation is advisable”, citing various security concerns that could continue to hinder its adoption, like price instability and numerous exchange failures.

The bankers, however, did not rule out embracing the digital currency and did suggest ways in which the banking industry could engage and participate.

"Should adoption accelerate, banking could participate increasingly in Bitcoin fund flows, especially as multicurrency accounts proliferate and reputational concerns subside."

It was recommended that Bitcoin be subject to the same anti-money-laundering laws, including Know-Your-Consumer, that banks are subjected to.  Moreover, the bankers recommended that Bitcoin be subjected to the suspicious activities reports (SARs) in which banks must currently comply.

Bitcoin is a software-based online payment system described by Satoshi Nakamoto in 2008 and introduced as open-source software in 2009. Payments are recorded in a public ledger using its own unit of account, which is also called bitcoin.

Nakamoto disappeared in early 2010 with over 1 million bitcoins that he had mined while maintaining the lion’s share of the network hashrate.

Full Story: http://altcoinpress.com/2014/09/bankers-ask-fed-to-regulate-cryptocurrencies/

[Verse]

It was recommended that Bitcoin be subject to the same anti-money-laundering laws, including Know-Your-Consumer, that banks are subjected to.  Moreover, the bankers recommended that Bitcoin be subjected to the suspicious activities reports (SARs) in which banks must currently comply.

The story here is that these bankers have no bloody idea what the FED does. FinCEN (U.S. Treasury Department) is responsible for SARs. Anti-money-laundering laws are enacted by congress.

Christ, these people just point at a random government institution and say "Regulate this#!@"



EDIT: I've read the FAC report that this article has completely misrepresented. The bankers report that Bitcoin does not pose a systematic risk to the banking system and state that they expect future regulation to mitigate any future risk it may pose. I liked their language, they view Bitcoin as a burgeoning threat.

The article you've quoted is idiotic and its title is inaccurate.

[cfdbit]

I read the report too, it was interesting.

http://www.federalreserve.gov/aboutthefed/fac-20140513.pdf

[MicroGuy]

The article you've quoted is idiotic

Here's the idiotic video version: https://www.youtube.com/watch?v=Ldv3GFxCMsE

[knight22]

The article you've quoted is idiotic

Here's the idiotic video version: https://www.youtube.com/watch?v=Ldv3GFxCMsE

You looked drunk.

[desticy]

The Fed said that Bitcoin is the free market, no one can Regulate it

[lyth0s]

How much alcohol did you drink before making the video?

[Hunyadi]

The Fed said that Bitcoin is the free market, no one can Regulate it

Yes, good luck trying to regulate it  Current exchanges are a different story...waiting for P2P exchange.

[lihuajkl]

The Fed said that Bitcoin is the free market, no one can Regulate it

absolutely! The individuals or companies dealing with bitcoin can be regulated. But the blockchain is impossible to be controlled.

[barwizi]

Nakamoto disappeared in early 2010 with over 1 million bitcoins that he had mined while maintaining the lion’s share of the network hashrate.

Oy, i'm right here!!! stop spreading FUD!!!

[chennan]

The Fed said that Bitcoin is the free market, no one can Regulate it

Yes, good luck trying to regulate it  Current exchanges are a different story...waiting for P2P exchange.

There are some decentralized exchanges out there now, for example Asset Exchange in Nxt, Stellar, BTSX etc.

[pikabit]

Microguy is hilarious lol

[kodtycoon]

The Fed said that Bitcoin is the free market, no one can Regulate it

Yes, good luck trying to regulate it   Current exchanges are a different story...waiting for P2P exchange.

that already exists.. :/

well.. nearly.. a friggin major improvement on traditional crypto exchanges anyway.

http://multigateway.org/

[odolvlobo]

This is very old news.

Here is a link to the actual document: http://www.federalreserve.gov/aboutthefed/fac-20140513.pdf

Note the date: Friday, May 9, 2014

[Verse]

The article you've quoted is idiotic

Here's the idiotic video version: https://www.youtube.com/watch?v=Ldv3GFxCMsE

That's the first time I've gotten a video response. It feels weird. I only watched a few seconds of it, you seemed to be a bit drunk. I did not mean my first post as a personal attack, just bashing some misinformation. If you'd like a discussion then I'd prefer text format.

The FED can't exert any control over Bitcoin whatsoever, unless congress passes a law expanding their power or Bitcoin becomes a staple of the balance sheets of major banks. The FED's toolkit is very limited and can only be used to macroeconomic ends. For instance the FED could tighten credit credit by selling off bonds, thereby restoring yields to lower risk assets and theoretically drive down the price of riskier assets like Bitcoin. But that would violate the FED's tenants of price stability and maximum sustainable employment by screwing with the entire economy in an attempt to exert control over a specific asset.

The notes from the FAC states that the FED expects other government agencies to deal with Bitcoin. The FED cannot directly exert influence on any of these other agencies, so they essentially washed their hands of the cryptocurrency discussion in D.C. back in May when this report was published.

[ihuntbtc]

In other news, banks are scared

[bornil267645]

they should help BTC and not regulate it.

[leannemckim46]

It was recommended that Bitcoin be subject to the same anti-money-laundering laws, including Know-Your-Consumer, that banks are subjected to.  Moreover, the bankers recommended that Bitcoin be subjected to the suspicious activities reports (SARs) in which banks must currently comply.

The story here is that these bankers have no bloody idea what the FED does. FinCEN (U.S. Treasury Department) is responsible for SARs. Anti-money-laundering laws are enacted by congress.

Christ, these people just point at a random government institution and say "Regulate this#!@"



EDIT: I've read the FAC report that this article has completely misrepresented. The bankers report that Bitcoin does not pose a systematic risk to the banking system and state that they expect future regulation to mitigate any future risk it may pose. I liked their language, they view Bitcoin as a burgeoning threat.

The article you've quoted is idiotic and its title is inaccurate.

Laws are generally written in a way so that federal agencies need to implement rules for people to comply with. They are also not written in a way so that there is only a very narrow interpretation of how the law is to be carried out.

[Verse]

Laws are generally written in a way so that federal agencies need to implement rules for people to comply with. They are also not written in a way so that there is only a very narrow interpretation of how the law is to be carried out.

I don't know if you mean to imply that I would disagree with this statement? Because I agree with it. I don't think I've implied otherwise.

I'll say it again: The U.S. Federal Reserve is not that agency. Also the FED isn't technically a federal agency, at least according to a 1982 court ruling. Furthermore Know-Your-Consumer is also the responsibility of FinCEN, a federal agency created by the Treasury Department.

[kingscrown]

i like the drunk video actually original style!