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Remember how a few weeks ago when the USGov released a reported acknowledging BTC as a currency? Remember how everyone thought that was a great thing? There wa

by _red 14y ago

Remember how a few weeks ago when the USGov released a reported acknowledging BTC as a currency? Remember how everyone thought that was a great thing? There was a hidden point to that. Being a currency brokerage company requires millions in compliance / certification / regulatory fees. Its not like the big NY banks are going to just let people get their money out of the system without a fight.

julespitt 14y ago
The FinCEN guidance explicitly states that Currency Exchange regulations do not apply: http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.... "A person must exchange the currency of two or more countries to be considered a dealer in foreign exchange. Virtual currency does not meet the criteria to be considered 'currency' under the BSA, because it is not legal tender. Therefore, a person who accepts real currency in exchange for virtual currency, or vice versa, is not a dealer in foreign exchange under FinCEN’s regulations." Edit: Just need to clarify that Money Transmitter regs do apply.
- apaprocki 14y ago
  Regulations certainly apply. For example, in the case of Bitfloor's local BoA deposit, a third party was accepting cash deposits and forwarding the money to the exchange. That requires the third party to be a money transmitter and could have repercussions if the bank account was also with BoA.
  - julespitt 14y ago
    Sure - I was just responding to the claim that it was Currency Exchange regulations that apply here.
ericd 14y ago
I'm pretty sure the NY banks have things they think are much more important to worry about currently - people "leaving the system" isn't a blip on their radar yet.
- eric_bullington 14y ago
  Well, I think they've noticed the blip, and are at least pretending not to be concerned: http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-scare-discover/ http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-sca...

by _red 14y ago

julespitt 14y ago

The FinCEN guidance explicitly states that Currency Exchange regulations do not apply: http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.... "A person must exchange the currency of two or more countries to be considered a dealer in foreign exchange. Virtual currency does not meet the criteria to be considered 'currency' under the BSA, because it is not legal tender. Therefore, a person who accepts real currency in exchange for virtual currency, or vice versa, is not a dealer in foreign exchange under FinCEN’s regulations." Edit: Just need to clarify that Money Transmitter regs do apply.

apaprocki 14y ago
Regulations certainly apply. For example, in the case of Bitfloor's local BoA deposit, a third party was accepting cash deposits and forwarding the money to the exchange. That requires the third party to be a money transmitter and could have repercussions if the bank account was also with BoA.
- julespitt 14y ago
  Sure - I was just responding to the claim that it was Currency Exchange regulations that apply here.

ericd 14y ago

I'm pretty sure the NY banks have things they think are much more important to worry about currently - people "leaving the system" isn't a blip on their radar yet.

eric_bullington 14y ago
Well, I think they've noticed the blip, and are at least pretending not to be concerned: http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-scare-discover/ http://blogs.wsj.com/moneybeat/2013/04/17/bitcoin-doesnt-sca...