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BitCoin advocates meet U.S. regulators

Written by James Delahunty (Google+) @ 28 Aug 2013 3:39 User comments (2)

BitCoin advocates meet U.S. regulators BitCoin Foundation members have met with the Financial Crimes Enforcement Network (FinCEN) to advocate for the digital currency.
FinCEN director, Jennifer Shasky-Calvery, confirmed that the regulator hosted a presentation by the BitCoin foundation. "This is part of our ongoing dialogue aimed at enhancing communication with our regulated financial industries," she said in a statement.

The job of FinCEN is to analyse information about financial transactions related to money laundering activity, terrorism financing and other financial crimes. BitCoin has been the subject of a lot of controversy in recent years due to its use in underground illegal markets, like the Silk Road drug trading hub. The FBI also reported last year that sophisticated criminal elements were exploiting BitCoin to move money around the world hoping to sidestep groups like FinCEN.

The goal of the BitCoin foundation is to improve and protect the integrity of the BitCoin currency.

However, BitCoin dealers/groups are slowly discovering that they are subject to the same rules and regulations that come with using traditional currency. Mt. Gox, a Tokyo-based group that exchanges U.S. dollars with BitCoins, had two of its accounts held by its U.S. subsidiary seized by agents of the DHS earlier this year because it was operating a money transmitting business with a license.

The Senate Committee on Homeland Security and Government Affairs has also investigated BitCoin and other digital currencies.

Tags: Bitcoin
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2 user comments

128.8.2013 7:51

"Mt. Gox, a Tokyo-based group that exchanges U.S. dollars with BitCoins, had two of its accounts held by its U.S. subsidiary seized by agents of the DHS earlier this year because it was operating a money transmitting business with a license."

Is that supposed to be "without a license?"

231.8.2013 13:24

What a crazy world where you need a license to do just about anything. 'Money transmitting business' license? Just another cost, another regulation to stop small competing businesses from being created; probably set up by the big banks (as most regulations are from the oligarchies/monopolies of the time of their creation).

Many people use Bitcoin as an alternative in particular because of lack of true regulation, and that in a sense, it is what some would call 'sound economics' (unlike fiat). The people involved are supposed to make rational decisions regarding their money. This is very much unlike banks which let people do stupid stuff (often with money that is not theirs).

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