International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Tuesday, October 28, 2014

FinCEN Issues Two Administrative Rulings Regarding Virtual Currency

FINCENThe Financial Crimes Enforcement Network (FinCEN) today issued two administrative rulings regarding virtual currency. One ruling addresses the application of FinCEN regulations to a virtual currency trading platform (FIN-2014-R011), and the other addresses the application of FinCEN regulations to a virtual currency payment system (FIN-2014-R012). 

 

FIN-2014-R011: http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R011.pdf  

Specifically, you ask whether the convertible virtual currency trading and booking platform that the Company intends to set up (the “Platform”) would make the Company a money transmitter under the BSA. Based on the following analysis of the description of the Platform as presented in your letter, FinCEN finds that the Company would be a money transmitter pursuant to our regulations.

FIN-2014-R012: http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R012.pdf

 

Specifically, you ask whether the convertible virtual currency payment system the Company intends to set up (the “System”) would make the Company a money transmitter under the BSA. Based on the following analysis of the description of the System to provide payments to merchants who wish to receive customer payments in Bitcoin, FinCEN finds that, if the Company sets up the System, the Company would be a money transmitter and should comply with all risk management, risk mitigation, recordkeeping, reporting, and transaction monitoring requirements corresponding to such status.

 

https://lawprofessors.typepad.com/intfinlaw/2014/10/fincen-issues-two-administrative-rulings-regarding-virtual-currency.html

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