Re: Filed a request for an administrative to FinCEN this morning.
I also brought up the scenario of operating an eWallet which involve only a single virtual currency and no real currency:
BTC: Person A -----> Wallet Provider -----> Person B
USD: None
BTC: Person A -----> Wallet Provider -----> Person B
USD: None
That's the question I had, since the guidance states:
Quote
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.
It doesn't matter if no "real" currency is handled. The more recently released comments from FinCEN say it a bit more clearly:
https://bitcointalk.org/index.php?topic=181708.0
Quote
Those who are intermediaries in the transfer of virtual currencies from one person to
another person, or to another location, are money transmitters that must register with FinCEN as
MSBs unless an exception applies. Some virtual currency exchangers have already registered
with FinCEN as MSBs, though they have not necessarily identified themselves as money
transmitters.
another person, or to another location, are money transmitters that must register with FinCEN as
MSBs unless an exception applies. Some virtual currency exchangers have already registered
with FinCEN as MSBs, though they have not necessarily identified themselves as money
transmitters.
Is it the end of unregistered exchanges?
This makes it more of a pain in the rear to operate any kind of Bitcoin/crypto-currency (or other virtual currency) exchange if you're based in the U.S., at least in a complying above ground way.
Still, I think this quote deserves emphasis:
Quote
The guidance explains how FinCENs money transmitter definition applies to certain exchangers and system administrators of virtual currencies depending on the facts and circumstances of that activity. Those who use virtual currencies exclusively for common personal transactions like receiving payments for services or buying goods online are not affected by this guidance.
Since Bernanke doesn't consider gold to be money I imagine buying gold coins online with bitcoins is not affected by the FinCEN guidance.
