US Bitcoin Exchange Arrests

[Simmo!]

In possibly the most predictable news of 2014 so far:

You do not have permission to view link Log in or register now.

The operators of two exchanges for the virtual currency Bitcoin have been arrested in the US.

The Department of Justice said Robert Faiella, known as BTCKing, and Charlie Shrem from BitInstant.com have both been charged with money laundering.

The authorities said the pair were engaged in a scheme to sell more than $1m (£603,000) in bitcoins to users of online drug marketplace the Silk Road.

 

[Mousey]

In the FinCEN newsletter I received today....

FinCEN Publishes Two Rulings on Virtual Currency Miners and Investors



The Financial Crimes Enforcement Network (FinCEN) today published two administrative rulings, providing additional information on whether a person’s conduct related to convertible virtual currency brings them within the Bank Secrecy Act’s (BSA) definition of a money transmitter. The first ruling states that, to the extent a user creates or “mines” a convertible virtual currency solely for a user’s own purposes, the user is not a money transmitter under the BSA. The second states that a company purchasing and selling convertible virtual currency as an investment exclusively for the company’s benefit is not a money transmitter. The rulings further interpret FinCEN’s March 18, 2013 Guidance to address these business models.



News Release:

You do not have permission to view link Log in or register now.

FIN-2014-R001: Application of FinCEN’s Regulations to Virtual Currency Mining Operations (

You do not have permission to view link Log in or register now.

)



FIN-2014-R002: Application of FinCEN’s Regulations to Virtual Currency Software Development and Certain Investment Activity (

You do not have permission to view link Log in or register now.

)