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Topic
Board Service Discussion
Re: CoinLab suing MtGox for $75 milliion?
by
DeathAndTaxes
on 04/05/2013, 06:16:30 UTC

Quote from: Forbes
CoinLab took the step last week of registering with FinCEN to become a Money Services Business (MSB) and their entity and registration number are available here. Since they are a self-declared seller of prepaid access (MSB code 413), they now must comply with a litany of Bank Secrecy Act requirements, including Suspicious Activity Reporting.

http://www.forbes.com/sites/jonmatonis/2013/03/02/bitcoin-exchange-deal-repatriates-assets-to-u-s/

It's a trap?

What is strange is that is not the correct MSB classification (at least not since FinCEN "clarification" in March).  FinCEN has deemed that exchangers of virtual currency are money transmitters*, also an MSB but code 409.

http://www.fincen.gov/financial_institutions/msb/definitions/msbKey.html

Maybe Forbes just got it wrong.


* For the record I think this is trying to put a square peg into a round hole and FinCEN should have done it properly by going to Congress getting Congressional approval for creating a new class of MSB related to virtual currency exchange with regs that actually deal with virtual currencies instead of trying to use an existing unrelated classification (with a host of regs which are either nonsensical or pointless when applied to virtual currencies) but that is water under the bridge at this point.