FinCEN Bitcoin News

US Treasury Secretary Steve Mnuchin reacts to Libra and the prospect of cryptocurrency

YouTube: Treasury Secretary Steve Mnuchin URGENT Speech on Cryptocurrency 27:31
Treasury Secretary Steve Mnuchin made these prepared remarks (emphasis added) and answered questions:
Last month the Libra Association, a consortium of 28 businesses including a Facebook subsidiary, announced that it is developing a cryptocurrency called the Libra. The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers. Cryptocurrencies such as bitcoin have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs, human trafficking... This is indeed a national security issue.
The United States has been at the forefront of regulating entities that provide cryptocurrency. We will not allow digital asset service providers to operate in the shadows, and will not tolerate the use of the cryptocurrencies in support of illicit activities. Treasury has been very clear to Facebook, bitcoin users, and other providers of digital financial services, that they must implement the same anti-money laundering and countering financing of terrorism (known as AML/CFT) safeguards as traditional financial institutions. Money transmitters of cryptocurrency must comply with the relevant bank secrecy act obligations (known as BSA), and register with the financial crimes enforcement network, known as FINCEN.
Many people are not familiar with FINCEN. It is a bureau of the US Department of Treasury. FINCEN's mission is to safeguard the financial system from illicit use, combat money laundering, and promote national security through the dissemination of financial intelligence. Last year alone it collected over 20 million BSA reports, and has collected over 300 million in the last 11 years. FINCEN implements the bank secrecy act's regulation and has federal regulatory, supervisory, and enforcement authority over money service businesses and banks.
The rules governing money service providers apply to physical and electronic transactions alike. As money service businesses, cryptocurrency money transmitters are subject to compliance examinations just like every other US bank. To be clear, FINCEN will hold any entity that transacts in bitcoin, Libra, or any other cryptocurrency, to its highest standards.
I also recently established the Financial Stability Oversight Council's Working Group on Digital Assets. This FSOC group enables US financial regulators, such as FINCEN, the Fed, OCC, CFTSC, CFPB, SEC, and other key stakeholders to work together to combat risks posed by cryptocurrencies.
As the president has said, bitcoin is highly volatile and based on thin air. We are concerned about the speculative nature of bitcoin and will make sure that the US financial system is protected from fraud. Given the international nature of cryptocurrencies we are also going to great lengths to ensure that effective regulation does not stop here at the US border.
Last month, led by the United States, the Financial Actions Task Force, known as FATF, the global standards-setter for AML/CFT, adopted comprehensive measures on how countries must regulate and supervise activities and providers in this space. This was a major step toward harmonizing international regulations concerning cryptocurrencies. We have also had extensive work at the G20, and I will be addressing this again this week at the G7 finance ministers in France.
To be clear, the US welcomes responsible innovation, including new technologies that may improve the efficiency of the financial system and expand access to financial services. That being said, with respect to Facebook's Libra, and other developments in cryptocurrencies, our overriding goal is to *maintain the integrity of our financial system** and protect it from abuse.
Treasury takes very seriously the role of the US dollar as the world's reserve currency, and will continue our efforts to protect our country and secure the US and global financial systems.
submitted by satoshiscrazyuncle to btc [link] [comments]

Adam S. Tracy Breaks Down FINCEN’s Regulation of Cryptocurrency

https://www.youtube.com/watch?v=8qbUG05jKPY
Cryptocurrency attorney Adam S. Tracy discusses FINCEN’s regulation of cryptocurrency and the impact on traders, cryptocurrency exchanges, and OTC bitcoin dealers. Email: [email protected]
— —
A former competitive rugby player, serial entrepreneur and, trader attorney, Adam S. Tracy offers over 17 years of progressive legal and compliance experience in the areas of corporate, commodities, cryptocurrency, litigation, payments and securities law. Adam’s experience ranges from commodities trader for oil giant BP, initial public offerings, M&A, to initial coin offerings, having represented both startups to NASDAQ-listed entities. As an early Bitcoin adapter, Adam has promoted growth of cryptocurrency and offers a unique approach to representing crypto-clients. Based in Chicago, IL, Adam graduated from the University of Notre Dame with dual degrees in Finance and Computer Applications and would later obtain his J.D. and M.B.A. from DePaul University. Adam lives outside Chicago with his six animals, which is illegal where he lives.
Email me: [email protected]
Primary website: http://www.tracyfirm.com
Twitter: https://twitter.com/TracyFirm
Youtube: https://www.youtube.com/channel/UCVOa...
Linkedin: https://www.linkedin.com/in/adamtracy/
Facebook: https://www.facebook.com/thetracyfirm/
Instagram: @adamtracyattorney
Telegram: @adam_tracy
Skype: @adamtracyesq
Email me: [email protected]
TRANSCRIPTION:
Obviously, there’s a huge emphasis on compliance from a cryptocurrency standpoint with respect to the SEC and to a lesser extent to the CFTC. But the one government agency that’s really put forth the most guidance, if you will, would be FinCEN. And we’ve talked about money service business registration in past, and FinCEN is the government agency that is dealt with enacting the tenants of the Bank Secrecy Act and overseeing money service businesses. And so FinCEN has put out guidance that sort of defines the players in the cryptocurrency market. And those three players are: users, administrators, and exchangers.
And so user is someone who uses virtual currency or cryptocurrency to buy and sell goods. FinCEN has come out directly and said that a user is not a money transmitter and hence not a money service business. An exchanger is one who deals in the exchange of cryptocurrency — the buying and selling of cryptocurrency in exchange for real or other virtual currencies. And in most cases FinCEN and has found that a exchanger is a money transmitter and thus a money service business, and subject to registration as a money service business. Then finally, an administrator, which is the interesting sort element here, is a party that issues virtual currency and has the ability to redeem that virtual currency. And in most cases FinCEN has found that an administrator is, in fact, a money transmitter and thus a money service, and is required to register as a money service business. And it’s a weird implication, or important implication, for ICO companies because they are obviously issuing cryptocurrency, but the caveat or sort of the tenant where I think most ICO companies fall out of the definition of an administrator is that most ICO companies don’t have the ability to redeem their cryptocurrency, right? They issue it, but they don’t redeem it. So therefore they wouldn’t fall into that definition of a money transmitter. So, you know, it’s a very strange implication because there are some ICOs out there that, you know, have this innate ability to redeem whether through conversion or some other mechanism the cryptocurrency that they’ve issued and sold. And technically by the book, according to FinCEN, you are the money transmitter and you need to register as a money service business or face severe fines, penalties, and the like. That’s sort of point one that people, I think, overlook.
Point two is, you know, how do you, sort of, fall outside the ambit of this, if you are a speculator, right? Let’s say I’m an individual who engages in the buying and selling of cryptocurrency or the arbitrage of different cryptocurrencies for my own account. FinCEN has come out with a decision that actually exempts such activity from the definition an exchanger, which across the board is almost always a money transmitter and thus required to register as a money service business. So, you know, there’s a great emphasis on the SEC, and where the SEC is going to fall, and to some extent the CFTC. And that’s valid. That’s super valid, because ultimately that’s cryptocurrency and the large part is a function of an ICO and raising capital for businesses, right? And so the question becomes are we engaging in offerings of securities? And that’s another discussion for another time. But what is codified, what is real, what people overlook, in my opinion my humble opinion for it’s worth, is FinCEN, and their money service business registration and the money transmitter laws that are associated there with. So, it’s definitely something to consider and definitely something to check out, you know, depending on what player you are within the the ecosphere of cryptocurrency. So check me out — TracyFirm.com.
submitted by bitattorney to u/bitattorney [link] [comments]

[uncensored-r/Bitcoin] Bitcoin is fraudulent and nothing but insider Trading ...NO, Researchers find that one person lik...

The following post by Theguy3993 is being replicated because the post has been silently removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ Bitcoin/comments/7qqmjt
The original post's content was as follows:
Yeah ok keep pumping out the articles about this so funny I would bet the articles stating bitcoin went to 1000$ on fraudulent money is 100% posted by insider traders or Wall St.. And Its no secret Wall St is driven by insider trading. Heck you can watch a documentary that shows how they do insider trading using loopholes of having a couple people down the line get the info that they "donate" money to for information. But anyways I just wanted to post another rant and laugh... Also, if you want to claim bitcoin is fraudulent based on a couple people who traded 36 million dollars worth of a coin worth 250 Billion on average give or take 50 billion or 0.000144% of bitcoin then I guess all banks should close tomorrow since 90% of all money banks handle have traces of cociane on them and clearly came from fraudulent places.
Again, I will state bitcoin will rise and fall like it always does pretty much only falling from fake news pumped in sync with sell offs to try to get more for cheap, and thats fine its so obvious to me also I have traded since before Mt.Gox and the coins never went to its peak and stayed there untill after the fall of Mt.Gox. The timeline may show that right before Mt.gox froze the price of BTC was going up. Until around that time but anyone who used MT.Gox knows that no one could move, trade or withdraw there funds long before it was froze and it finally froze from the lawsuits regarding this so essentially Mt.Gox was out of the game.
And for those who like facts here you are I will include the links also
https://en.wikipedia.org/wiki/History_of_bitcoin#2013
"On 15 May 2013, the US authorities seized accounts associated with Mt. Gox after discovering that it had not registered as a money transmitter with FinCEN in the US.[52][53]
On 17 May 2013, it was reported that BitInstant processed approximately 30 percent of the money going into and out of bitcoin, and in April alone facilitated 30,000 transactions,[54]
On 23 June 2013, it was reported that the US Drug Enforcement Administration listed 11.02 bitcoins as a seized asset in a United States Department of Justice seizure notice pursuant to 21 U.S.C. § 881.[55] It is the first time a government agency has claimed to have seized bitcoin.[56][57]
In July 2013 a project began in Kenya linking bitcoin with M-Pesa, a popular mobile payments system, in an experiment designed to spur innovative payments in Africa.[58] During the same month the Foreign Exchange Administration and Policy Department in Thailand stated that bitcoin lacks any legal framework and would therefore be illegal, which effectively banned trading on bitcoin exchanges in the country.[59][60] According to Vitalik Buterin, a writer for Bitcoin Magazine, "bitcoin's fate in Thailand may give the electronic currency more credibility in some circles", but he was concerned it didn't bode well for bitcoin in China.[61]
On 6 August 2013, Federal Judge Amos Mazzant of the Eastern District of Texas of the Fifth Circuit ruled that bitcoins are "a currency or a form of money" (specifically securities as defined by Federal Securities Laws), and as such were subject to the court's jurisdiction,[62][63] and Germany's Finance Ministry subsumed bitcoins under the term "unit of account"—a financial instrument—though not as e-money or a functional currency, a classification nonetheless having legal and tax implications.[64]
In October 2013, the FBI seized roughly 26,000 BTC from website Silk Road during the arrest of alleged owner Ross William Ulbricht.[65][66][67] Two companies, Robocoin and Bitcoiniacs launched the world's first bitcoin ATM on 29 October 2013 in Vancouver, BC, Canada, allowing clients to sell or purchase bitcoin currency at a downtown coffee shop.[68][69][70] Chinese internet giant Baidu had allowed clients of website security services to pay with bitcoins.[71]
In November 2013, the University of Nicosia announced that it would be accepting bitcoin as payment for tuition fees, with the university's chief financial officer calling it the "gold of tomorrow".[72] During November 2013, the China-based bitcoin exchange BTC China overtook the Japan-based Mt. Gox and the Europe-based Bitstamp to become the largest bitcoin trading exchange by trade volume.[73]
In December 2013, Overstock.com[74] announced plans to accept bitcoin in the second half of 2014. On 5 December 2013, the People's Bank of China prohibited Chinese financial institutions from using bitcoins.[75] After the announcement, the value of bitcoins dropped,[76] and Baidu no longer accepted bitcoins for certain services.[77] Buying real-world goods with any virtual currency has been illegal in China since at least 2009.[78]"
In fact I was trading the Down swings around this time and remember it quite clearly and the price most deffinatly did not shoot up with any relation to Mt.Gox if anything Mt.Gox was the reason for the fall from the news and panic!
Also, WAKE UP PEOPLE. Wall St's total value is what 2.7 Trillion that took like 100 years to get. Does no one else realize the magnitude of Bitcoin to them. Bitcoin in 10 years or less including its many other Coins under it is worth 658-758Billion or 0.65-0.75T in 1/10th the time Wall St did it and its getting bigger all the time.
I've said it before and Ill say it again there scared because Bitcoin, (and altcoin), traders are used to volatility, We can loose 70% of our gains or investment in a day or an hour and still keep on truckin. But that type of volatility scared the pants off the big traders because they also have investors to explain these situations to and they have no merits to base there explanations on since nothing in the real world short of good and bad news or money in and money out of coins affects the prices very much. And for this reason Wall St will never like it and the fact its outside of there nice controlled systems they designed that benefit the rich and rape the poor. And this new system which does not allow credit, or BS is a new realm to them. Sure there might be some insider trading some of the time but the order books and live stats are available to anyone and everyone equally, unlike stocks where you need crazy memberships just to get short 15 minute delayed stats on the live markets and only the top accounts with over 50,000$ invested can even dream about getting anything better. And you have to pay 6.99-24.99 Per trade the lesser being for the 50k investor, leaving no learning curve for the small guys. So in my opinion its still a way better system and anyone can easily do some research like I have today and not panic sell from every little BS article and simple trade for yourselves. And Bitcoin to Altcoin trades BTW will cost you 0.06-0.08% and Bitcoin/Altcoin to USD (Or your Currency) will cost you 0.18-0.24% on most exchanges or platforms.
If you've read my rant this far I thank you for your time. Some article just really grind my gears :D
PS - Below is some handy trading platforms and tools
I would also like to take a moment just to say anyone interested in a FreeTrading Platform should check out Qt Bitcoin Trader from source forge. Or if your a bit more advanced there is a nice program you can try for free and the trial is the the same as the full version (I have used both since I bought it shortly after) and that is called LeonarDo by margin software a very talented German company.
Qt Bitcoin Trader - https://sourceforge.net/projects/bitcointrade Leonardo - https://marginsoftware.de/product.html
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

01-16 16:43 - 'Bitcoin is fraudulent and nothing but insider Trading ...NO, Researchers find that one person likely drove Bitcoin from $150 to $1,000 ....NO. Try more FUD' (self.Bitcoin) by /u/Theguy3993 removed from /r/Bitcoin within 564-574min

'''
Yeah ok keep pumping out the articles about this so funny I would bet the articles stating bitcoin went to 1000$ on fraudulent money is 100% posted by insider traders or Wall St.. And Its no secret Wall St is driven by insider trading. Heck you can watch a documentary that shows how they do insider trading using loopholes of having a couple people down the line get the info that they "donate" money to for information. But anyways I just wanted to post another rant and laugh... Also, if you want to claim bitcoin is fraudulent based on a couple people who traded 36 million dollars worth of a coin worth 250 Billion on average give or take 50 billion or 0.000144% of bitcoin then I guess all banks should close tomorrow since 90% of all money banks handle have traces of cociane on them and clearly came from fraudulent places.
Again, I will state bitcoin will rise and fall like it always does pretty much only falling from fake news pumped in sync with sell offs to try to get more for cheap, and thats fine its so obvious to me also I have traded since before Mt.Gox and the coins never went to its peak and stayed there untill after the fall of Mt.Gox. The timeline may show that right before Mt.gox froze the price of BTC was going up. Until around that time but anyone who used MT.Gox knows that no one could move, trade or withdraw there funds long before it was froze and it finally froze from the lawsuits regarding this so essentially Mt.Gox was out of the game.
And for those who like facts here you are I will include the links also
[link]1
"On 15 May 2013, the US authorities seized accounts associated with Mt. Gox after discovering that it had not registered as a money transmitter with FinCEN in the US.[52][53]
On 17 May 2013, it was reported that BitInstant processed approximately 30 percent of the money going into and out of bitcoin, and in April alone facilitated 30,000 transactions,[54]
On 23 June 2013, it was reported that the US Drug Enforcement Administration listed 11.02 bitcoins as a seized asset in a United States Department of Justice seizure notice pursuant to 21 U.S.C. § 881.[55] It is the first time a government agency has claimed to have seized bitcoin.[56][57]
In July 2013 a project began in Kenya linking bitcoin with M-Pesa, a popular mobile payments system, in an experiment designed to spur innovative payments in Africa.[58] During the same month the Foreign Exchange Administration and Policy Department in Thailand stated that bitcoin lacks any legal framework and would therefore be illegal, which effectively banned trading on bitcoin exchanges in the country.[59][60] According to Vitalik Buterin, a writer for Bitcoin Magazine, "bitcoin's fate in Thailand may give the electronic currency more credibility in some circles", but he was concerned it didn't bode well for bitcoin in China.[61]
On 6 August 2013, Federal Judge Amos Mazzant of the Eastern District of Texas of the Fifth Circuit ruled that bitcoins are "a currency or a form of money" (specifically securities as defined by Federal Securities Laws), and as such were subject to the court's jurisdiction,[62][63] and Germany's Finance Ministry subsumed bitcoins under the term "unit of account"—a financial instrument—though not as e-money or a functional currency, a classification nonetheless having legal and tax implications.[64]
In October 2013, the FBI seized roughly 26,000 BTC from website Silk Road during the arrest of alleged owner Ross William Ulbricht.[65][66][67] Two companies, Robocoin and Bitcoiniacs launched the world's first bitcoin ATM on 29 October 2013 in Vancouver, BC, Canada, allowing clients to sell or purchase bitcoin currency at a downtown coffee shop.[68][69][70] Chinese internet giant Baidu had allowed clients of website security services to pay with bitcoins.[71]
In November 2013, the University of Nicosia announced that it would be accepting bitcoin as payment for tuition fees, with the university's chief financial officer calling it the "gold of tomorrow".[72] During November 2013, the China-based bitcoin exchange BTC China overtook the Japan-based Mt. Gox and the Europe-based Bitstamp to become the largest bitcoin trading exchange by trade volume.[73]
In December 2013, Overstock.com[74] announced plans to accept bitcoin in the second half of 2014. On 5 December 2013, the People's Bank of China prohibited Chinese financial institutions from using bitcoins.[75] After the announcement, the value of bitcoins dropped,[76] and Baidu no longer accepted bitcoins for certain services.[77] Buying real-world goods with any virtual currency has been illegal in China since at least 2009.[78]"
*** In fact I was trading the Down swings around this time and remember it quite clearly and the price most deffinatly did not shoot up with any relation to Mt.Gox if anything Mt.Gox was the reason for the fall from the news and panic!
Also, WAKE UP PEOPLE. Wall St's total value is what 2.7 Trillion that took like 100 years to get. Does no one else realize the magnitude of Bitcoin to them. Bitcoin in 10 years or less including its many other Coins under it is worth 658-758Billion or 0.65-0.75T in 1/10th the time Wall St did it and its getting bigger all the time.
[link]2
I've said it before and Ill say it again there scared because Bitcoin, (and altcoin), traders are used to volatility, We can loose 70% of our gains or investment in a day or an hour and still keep on truckin. But that type of volatility scared the pants off the big traders because they also have investors to explain these situations to and they have no merits to base there explanations on since nothing in the real world short of good and bad news or money in and money out of coins affects the prices very much. And for this reason Wall St will never like it and the fact its outside of there nice controlled systems they designed that benefit the rich and rape the poor. And this new system which does not allow credit, or BS is a new realm to them. Sure there might be some insider trading some of the time but the order books and live stats are available to anyone and everyone equally, unlike stocks where you need crazy memberships just to get short 15 minute delayed stats on the live markets and only the top accounts with over 50,000$ invested can even dream about getting anything better. And you have to pay 6.99-24.99 Per trade the lesser being for the 50k investor, leaving no learning curve for the small guys. So in my opinion its still a way better system and anyone can easily do some research like I have today and not panic sell from every little BS article and simple trade for yourselves. And Bitcoin to Altcoin trades BTW will cost you 0.06-0.08% and Bitcoin/Altcoin to USD (Or your Currency) will cost you 0.18-0.24% on most exchanges or platforms.
If you've read my rant this far I thank you for your time. Some article just really grind my gears :D
PS - Below is some handy trading platforms and tools
I would also like to take a moment just to say anyone interested in a FreeTrading Platform should check out Qt Bitcoin Trader from source forge. Or if your a bit more advanced there is a nice program you can try for free and the trial is the the same as the full version (I have used both since I bought it shortly after) and that is called LeonarDo by margin software a very talented German company.
Qt Bitcoin Trader - [link]3 Leonardo - [link]4
'''
Bitcoin is fraudulent and nothing but insider Trading ...NO, Researchers find that one person likely drove Bitcoin from $150 to $1,000 ....NO. Try more FUD
Go1dfish undelete link
unreddit undelete link
Author: Theguy3993
1: https://en.wikipedia.org/wiki/History_of_bitcoin#2013 2: www*w***dcoinind*x.*om/ 3: s*u*c*forge*ne*/*roje*ts/bitc*intr**e 4: ma**insof*ware.de*p**duct.ht**
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

Seizure Warrant Against Mutum Sigillum (short preliminary legal analysis)

Mirrored from my blog (there with links working):
http://k.lenz.name/LB/?p=9369
The United States District Court in Maryland has issued a Seizure Warrant against a company called Mutum Sigillum (which seems to be Latin and mean something like "silent seal"). The Warrant authorizes to seize funds of Mutum Sigillum stored at the Dwolla account No. 812-649-1010.
Dwolla operates an online payment service that is open only to residents of the United States. See their Terms of Service, which state:
"Dwolla may only be used in connection with United States Financial Institutions: User funds must originate at a United States Financial Institution, and Dwolla will only instruct Veridian to transfer funds to a United States Financial Institution associated with the appropriate Dwolla User."
Mutum Sigillum is an American company owned by Mark Karpeles, who also owns the World's largest Bitcoin exchange Mt.Gox, located in Japan right next door to my university.
The warrant is accompanied by an affidavit (a sworn statement of facts) by a Special Agent of "Homeland Security Investigations, U.S. Immigration and Customs Enforcement". This Affidavit is not only a statement of fact, but it also explains some legal theories behind the application for the Seizure Warrant.
The Affidavit establishes that a "Confidential Informant (CI-1)" residing and banking in Maryland was able to send some funds to himself, with Mutum Sigillum and Mt.Gox involved in the process.
In detail: CI-1 opens accounts at Dwolla and at Mt.Gox. CI-1 funds his Mt.Gox over Dwolla. CI-1 buys some Bitcoins at Mt.Gox. CI-1 sells Bitcoins on Mt.Gox, getting back to dollars at his Mt.Gox account. CI-1 directs Mt.Gox to send these dollars to his Dwolla account, where they are right now.
So, the Affidavit has shown that CI-1 was able to send these dollars to himself over this elaborate process.
But, unless I am missing something here, that is not what one could reasonable describe as "transmitting money". You would need some other party that actually receives funds for that.
This is similar to sex. You are supposed to do it with someone else involved.
The relevant American statute, 18 USC § 1960, helpfully provides a definition of "money transmitting".
"(2) the term “money transmitting” includes transferring funds on behalf of the public by any and all means including but not limited to transfers within this country or to locations abroad by wire, check, draft, facsimile, or courier;"
"Transfer funds" means getting them to someone else. The only one doing that in this case is Dwolla. Both CI-1 and Mutum Sigillum are just normal users of the money transmitting service Dwolla provides.
The recent FinCen Guidance of March 2013 makes in principle the same point:
"The term "money transmission services" means "the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means." (Emphasis added).
CI-1 transferred the funds to himself. No other person involved. And he transferred them from Maryland to Maryland. No other location involved.
The above analysis is just common sense. Mt.Gox is a user of money transfer services, not a provider. If they were still dealing in "Magic the Gathering" cards that would be even more evident. But the fact that they are operating an exchange in Bitcoin doesn't change that fact.
The March FinCen "Guidance" has some more specific language on Bitcoin, which is rather confusing. Here it is:
"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."
One could indeed read this as meaning that in the opinion of FinCen, operating an exchange (like Mt.Gox) does, means that they are also in the business of transmitting money.
If so, such an opinion is entirely without merit.
Sure, if CI-1 buys a Bitcoin from some other third party (TP), then Mt.Gox transfers that Bitcoin from TP to CI-1, and the dollars in CI-1's account to TP.
But that is an exchange of things of equal value, at the market price when that exchange happens. It transfers exactly zero funds from CI-1 to TP, and exactly zero funds from TP to CI-1.
Even if it was possible to somehow get away with this overly broad construction of 18 USC § 1960 the Application for the Seizure Warrant seems to assume, there is the added question why a Japanese company operating in Shibuya, Tokyo, would be obliged to follow this American law. Didn't the American occupation of Japan end in 1952?
submitted by Karl-Friedrich_Lenz to Bitcoin [link] [comments]

Assistance requested on Letter to congress to overrule FENCen declaration that bitcoin purchase businesses should be moneychangers.

This was just an arbitrary declaration by FINCen with no legal legislation or direction from Congress.
We can get this reversed in two seconds with enough constituent reaction.
Letter to congress
Work in progress
We need the source of the quote from fincen when they originally declared bitcoin purchase avenues should fall under money changer rules.
Letter to congress
Thanks guys. You just let FINCen chase the new internet to China costing America AND Americans future Trillions.
. From wikipedia: "The Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department requires MSBs to register.[9] It is also a felony to engage in money transmission without a license in any state that require a license to operate.[10] Internet and mobile-based payment services are also required to seek a state money transmitter license to offer services to individuals residing in the state."
Bitcoin pioneer based in the USA , OkPay, now refusing US business http://i.imgur.com/die4lU0.png
Also they have this on their signup page: "Unfortunately we are not able to provide financial services to USA residents due to bank restrictions at the moment. Please feel free to complete your account registration - there is no fees associated with it. As soon as the limitation is removed we will announce it in our news and inform our clients accordingly."
Thanks guys. You just let FiNCen chase the new internet to China costing America AND Americans future Trillions.
submitted by georedd to Bitcoin [link] [comments]

Effects of regulation and some observations (warning: long)

The stiff regulatory headwind which manifestated itself in the SEC investigation letters and FinCEN guidelines FIN-2013-G001 (published in March 2013) followed by this weeks Rulings FIN-2014-R011 and FIN-2014-R012 make it obvious that Bitcoin is fundamentally incompatible with the current financial system at large. It is clear now that FinCEN regards any business which engages in Bitcoin as a money services business (MSB), which means that such business will have to implement an elaborate anti-money laundering program and comply with recordkeeping, reporting and transaction monitoring requirements as set forth by FinCEN[1].
In and of itself, these rulings cannot come as a surprise as it is extending existing legislation to the Bitcoin domain and treats bitcoin as just another asset which can be used to transfer value between entities. In the narrow view of the FinCEN, any value transferred has to use the closed circuit of the current financial system and must play by its rules, and Bitcoin can be no exception.
For Bitcoin to remain viable as a payment option, Bitcoin payment processors such as Bitpay and Vaurum have now started to spend money on compliance - money that will have to be recouped by only small margins on processed bitcoin payments. Current volumes in bitcoin payments likely don't justify these costs, so investing money in compliance therefore speculates on the viability and growth of Bitcoin as a payments system within the USA in the future.
Bitcoin is by design able to operate outside of the current financial system as a fully automated, frictionless and efficient payment system. The FinCEN rulings state that companies engaging in Bitcoin are unsurprisingly subject to existing regulations - and compliance incurs cost and removes at least some of the efficiencies which Bitcoin enjoyed over traditional payment systems. Bitcoin is no longer frictionless - processing bitcoin payments now incurs significant upfront and ongoing costs. Needless to say, this will hurt - perhaps even reverse - its adoption.
Let's speculate a bit on what this might mean for the near and long-term future. It is save to say that a lot will depend on whether payment processors and exchanges will have the resources to survive, comply to MSB regulations and recoup the investments. If so, Bitcoin will likely continue to be gradually adopted by more and more businesses. If not, and if for instance BitPay and other payment processors throw the towel, this would largely reverse merchant adoption and pushes Bitcoin outside the existing closed, legal financial circuit. The third option would be "neither of the above" - new legislation might create exemptions for Bitcoin, for instance.
The cost of compliance clearly acts as a giant hurdle for Bitcoin processors and exchanges. FinCEN regulations seemingly seek to create a closed circuit in which money circulates, and in which every transfer can be tracked. That this has failed miserably has been illustrated by the recent money laundering scandals as well as the fact that criminals continue to use of plain old cash. The effectiveness of anti-money laundering regulations is increasingly questioned. Considering the questionable effectiveness of these regulations, the net effect of these regulations comes down to protecting the established finance industry and make life hard for new contenders such as BitPay, that have nowhere near the resources as for instance a giant such as VISA, for which the cost of compliance can be much smaller because of economies of scale. There is no level playing field and the regulations are benefitting the establishment, while hurting new entrants.
The bigger picture
Financial scandals, crises, as well as perceived terrorist threats fan ever more stringent rules and regulations that have questionable effectiveness but do increase cost, hurt privacy and diminish autonomy over ones own funds. Recent civil asset forfeitures by the IRS under the Civil Asset Forfeiture Reform Act of 2000 are a manifestation of the latter. Cash amounts of over $10,000 are suspicious by default and have to be reported using form 8300 - the justification might be that the pervasive presence of banking does not require the use of large sums of cash, which are therefore suspicious by default. Obviously, this discourages the use of cash and makes it very difficult to do large transactions outside of the closed financial circuit.
The presumptions here are:
It needs no arguing here that each of these presumptions are false.
For the first time in history, Bitcoin offers a way to store value privately, anonymously (if done properly) and such that it is impossible to confiscate. Now this is something new, and it profound. On the shallow practical side, doing a transaction valued more than $10,000 is trivial. Money stored as bitcoin can be accessed anywhere and at all times. Although rules and regulations apply, the ability to fully anonymously access and transfer value (if the proper precautions are taken) make them unenforceable.
The resistance against confiscation gives Bitcoin additional utility. For this to work, Bitcoin must offer a way to be used completely anonymously. Because if a government knows you own bitcoin which they cannot seize, they can seize your car, house or ultimately you yourself instead (as in, put you in jail), until you give up your bitcoin. Full anonymity is therefore not a nice-to-have, it is essential in offering protection against confiscation of wealth.
Another well known avenue to confiscate wealth of an entire nation is by monetary inflation. Simply printing or creating money enriches those close to where the money surfaces first - at the expense of those who receive the money last. In quantitative easing, banks sold illiquid bonds to the Fed, and receive cash in return which they used to prop up their balances or to buy assets. Since bank lending has not much improved, the overall effect on the economy has been low. However, bank stocks are doing great - clearly showing banks gained most from QE, outperforming the Dow Jones industrial average as well as the S&P500 by a margin, a rebound that kicked off in earnest a mere 4 months after the start of QE in November 2008. Since wealth can not be created by the QE magic wand, left or right this gain has been at the expense of everyone else owning dollars.
More extremely, history is full of countries defaulting on their debt - often rendering their currency worthless with obviously devastating effects on most of the population. Another profoundly new property of Bitcoin is the predictability of the rate in which it is created, and the hard limit which is set at 24 million bitcoins ever to be created. This offers owners of bitcoin the peace of mind that the value of bitcoin can not be stolen insidiously by means of inflation - as it can and is done today with fiat.
Clearly, in its design, Bitcoin offers resistance against inflation and confiscation, two privileges misused by governments all over the world and throughout history. This can be one of the reasons why Bitcoin appeals to many as a way to store value safely - the irony here being of course the many Bitcoin related scams and people losing their coins through theft. Nevertheless, Bitcoin is still immature technology but rapidly improving - it is only a matter of time before stolen coins are mostly a thing of the past. No regulation required.
In the mean time, there although economic improvement is reported, this growth is not experienced by consumers. Burdensome regulations, combined with the uncharted territory of QE as well as USA debt being higher than ever except during WW2 will make some people reason to be skeptical towards the current economical and political state of affairs, and this may be an additional factor in the attraction towards bitcoin as an alternative store of value.
So far the focus was on the USA, where Bitcoin adoption is the largest. However the world is a big place and the global nature of Bitcoin as well as the regulatory harassment in the USA might well mean that Bitcoin will prosper elsewhere first. The global nature of Bitcoin and the fact that anyone without a bank account or credit card can now also participate in global commerce was previously impossible and very exciting in itself. Who knows what derivatives built on top of Bitcoin may hold in the future.
In the long term, Bitcoin will just not go away, it will prevail, and grow. Either gradually, or in the event of a new economic crisis or a period of high (USD or EUR) price-inflation, perhaps in a big way.
Note [1] Quoting FIN-2014-R011: When engaging in convertible virtual currency transactions as an exchanger, a person must register with FinCEN as a money transmitter, assess the money laundering risk involved in its non-exempt transactions, and implement an anti-money laundering program to mitigate such risk. In addition, the Company must comply with the recordkeeping, reporting, and transaction monitoring requirements under FinCEN regulations. Examples of such requirements include the filing of Currency Transaction Reports (31 CFR § 1022.310) and Suspicious Activity Reports (31 CFR § 1022.320), whenever applicable, general recordkeeping maintenance (31 CFR § 1010.410), and recordkeeping related to the sale of negotiable instruments (31 CFR § 1010.415). Furthermore, to the extent that any of the Company’s transactions constitute a “transmittal of funds” (31 CFR § 1010.100(ddd)) under FinCEN’s regulations, then the Company must also comply with the “Funds Transfer Rule” (31 CFR § 1010.410(e)) and the “Funds Travel Rule” (31 CFR § 1010.410(f)).
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4/30/14 - Bitcoin on Bloomberg, FinCEN, Dark Wallet ... Money Transmitter Basics 01 FinCEN Registration & Money Transmitter Licenses BITCOIN OVER $20,000 Says Novogratz - FinCen & Liechtenstein Crypto Regulation - Medici Bank Crypto What is MONEY TRANSMITTER? What does MONEY TRANSMITTER mean? MONEY TRANSMITTER meaning

Further, the Financial Crimes Enforcement Network (“FinCEN”) has issued Guidance declaring that administrators or exchangers of digital currency – including popular crypto currencies such as Bitcoin – represent money transmitting businesses which must register with FinCEN under 31 U.S.C. § 5330 as money services businesses (“MSBs”), which in turn are governed by the Bank Secrecy ... Any money transmitter that fails to register with FinCEN or to obtain the requisite state licensing may be subject to criminal prosecution under 18 U.S.C. § 1960. Additionally, the general money laundering and spending statutes, 18 U.S.C. §§ 1956 and 1957, cover financial transactions involving virtual currencies. Finally, where virtual currencies are used in furtherance of underlying ... As of September 5, 2018, the Money Services Business Association, Inc. (MSBA) has integrated into its operation the services and capabilities of the National Money Transmitters Association (NMTA). With the consolidation of the two entities, the MSBA is the only broad-based trade association focused on tracking state and federal legislation and regulation for the money service business industry ... Whats a Money Transmitter? Why Every Cryptocurrency User Should Know Mario Costanz 2018-04-10T06:21:40+00:00 Cryptocurrency Federal and state laws require people to be licensed as money transmitters if they transmit funds from one person to another. Over the past few years, a number of individuals and businesses hav NOTE: EVOLVING SECTOR: The cryptocurrency/money transmitter regulatory environment is constantly evolving. As such, IRTA will review and update this Advisory Memo as needed, and new revisions of this memo will be released accordingly in the future. Money Transmitter Regulatory History – FinCEN. The US Federal government has regulated money transmission since 1970 via the Bank Secrecy Act ...

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4/30/14 - Bitcoin on Bloomberg, FinCEN, Dark Wallet ...

FinCen Regulation - https://twitter.com/el33th4xor/status/1126516792510361602 Get the Ledger Nano X to Safely store your Crypto - https://www.ledgerwallet.co... This video is unavailable. Watch Queue Queue. Watch Queue Queue Question: Does registration on FinCEN give you a money transmitter license? About Faisal Khan Faisal Khan is a banking / payments consultant specializing in cross-border payment system and a ... For the most complete data on all crypto currencies check: https://coincheckup.com The crypto research platform. Full credits for this video to BitcoinNews.com who listed the info in this video ... http://moneyandtech.com/apr30-news-update/ Happy Hump Day with the top current news in Money & Tech: Bloomberg announced today that it is now providing bitco...

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