This is an interesting article (about an interesting case) but the title is rubbish. There isn't really a single answer to the question "Is bitcoin money?" It d

This is an interesting article (about an interesting case) but the title is rubbish. There isn't really a single answer to the question "Is bitcoin money?" It depends on the context. Different laws dealing with money transmission, foreign currency exchange, and the like define things differently. For the case that is the subject of the article, the relevant question is "Is someone who exchanges bitcoins for US dollars a 'money services business' as defined by chapter 560 of the Florida statutes?" Read a few definitions from the statute and you'll likely be able to answer the question: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0500-0599/0560/Sections/0560.103.html http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Displ... Based on my (non-lawyerly) reading, I would say bitcoin is not a currency, and thus a bitcoin dealer is not a foreign currency dealer, but it is almost certainly a "payment instrument" which means selling bitcoins makes you a seller of payment instruments, and a seller of payment instruments is a "money services business". Interestingly, you get different results depending on what laws you're looking at. For instance I reach the opposite conclusion when reading the Illinois statutes, and think you can probably sell bitcoins there legally. (http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1201& http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1201&) Though this guy sold them even though the undercover cops told him they were going to use it to buy stolen credit card numbers. That's just dumb, and I would guess prosecutors can find something to charge you with if you do that in almost any state. (And it's definitely a violation of US Federal anti-money laundering law if you don't file a SAR)