FinCEN, The United States Financial Crimes Enforcement Network has publicized rulings that clarify where the digital currency space will fall under.
The network says that those who are mining for personal gain and companies that buy and sell transferable virtual currency for the sole purpose of investing will not be subjugated to the Bank Secrecy Act. The press release states:
“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 announcement looked to clear up FinCEN’s announcement from March 2013, which indicated that businesses took responsibility in having to comply with anti-money laundering, keeping records and reporting under FinCEN regulations.
The news was released shortly after the NYDFS hearings took place this past Tuesday and Wednesday. During the hearings, NYS regulator Benjamin Lawsky chimed in on how the world does not yet have a regulated structure for the digital currency system.
Digital currency issues are something new that our generation will have to figure out and uncover. FinCEN has taken the first few baby steps in deciphering what can be done with bitcoin, at least on the mining side of the spectrum.
Regulation of virtual currencies are looked at with more open-mindedness than before within New York. For bitcoin to become more successful, it will have to be viewed with similar unbiased outlooks on a world-wide platform.
FinCEN Has Best Interests in Mind
Many users of the digital currency community took to social media to celebrate what they are calling a ‘huge victory.’ However, some members of the digital mining community feel that the US government can always change their mind on bitcoin regulated decisions.
Jeff Garzik voiced that more clarity has to be given to the grounds in which bitmining can resume under. The bitcoin developer says:
“I hope to see future additional clarity from FinCEN and IRS vis-a-vis mining pools vs. miners”.
This is a victory for bitcoin enthusiasts as digital currency is starting to become well recognized as a formidable asset to the rest of the world. FinCEN’s decree is a great start for bitcoin’s rise to glory, although it still has a long way to go.
With the mining of electronic coins being legal, other bitcoin related systems may soon be joining in on the party.
Stay tuned with Coinreport for the latest bitcoin and FinCEN news.