WASHINGTONThe world's largest bitcoin trading exchange appears to have taken a key step to comply with U.S. anti-money-laundering rules and potentially avoid additional run-ins with authorities.
A company listed as Mt. Gox this week registered as a money services business with the Treasury Department's Financial Crimes Enforcement Network, according to FinCen's website. Tokyo-based Mt. Gox, which says it handles about 80% of all trading in the virtual currency, couldn't immediately be reached for comment.
FinCen in March started applying traditional money-laundering rules to "virtual currencies" amid growing concern that new forms of digital cash are being used for illicit activities. Those rules mandate that exchanges register with FinCen, follow stricter bookkeeping requirements and report transactions of more than $10,000.
About a month after the edict, the Department of Homeland Security seized an account tied to Mt. Gox, alleging the company and a subsidiary were conducting transactions "as part of an unlicensed money service business."
According to FinCen's website, the agency received Mt. Gox's registration on Thursday. The online form listed a street in Dover, Del., as the company's address.
We have now commenced with all the preliminary paperwork in order to become a fully licensed money transmitter in Hong Kong. During the application period and until final launch this requires us to stop receiving incoming wires during this time with immediate effect.
Only deposits in bitcoins will be therefore accepted until we get our approval, hopefully very soon. Once we have it we will promptly resume this form of funding. Withdrawals will be normally processed but will require KYC data collection from our side.
Thanks a lot for your understanding.
Raphael Bitfinex Team
I also noticed lending/margin trading of LTC seems to be active.