To view or print PDF content, download the free Adobe Acrobat Reader.
|FOR IMMEDIATE RELEASE
January 30, 2014
|CONTACT: Steve Hudak
FinCEN Publishes Two Rulings on Virtual Currency Miners and Investors
WASHINGTON, D.C. Ė The Financial Crimes Enforcement Network (FinCEN) today published two administrative rulings, providing additional information on whether a personís conduct related to convertible virtual currency brings them within the Bank Secrecy Actís (BSA) definition of a money transmitter. The first ruling states that, to the extent a user creates or ďminesĒ a convertible virtual currency solely for a userís 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 companyís benefit is not a money transmitter. The rulings further interpret FinCENís March 18, 2013 Guidance to address these business models.
FinCEN often publishes versions of administrative rulings that have been issued to specific parties so that the broader community of shared interest can benefit from additional information and insight. Publication on FinCENís Web site indicates that the administrative ruling is a regulatory interpretation valid for any situation that fits the description of the facts and circumstances as contained in the ruling. Occasionally, recipients of administrative rulings may choose to publicize the ruling themselves; however, a FinCEN administrative ruling made public only by a non-FinCEN party should not be casually interpreted to be applicable to persons other than the recipient.
Individuals or businesses that would like further explanation of the scope and content of FinCENís regulations or regulatory interpretations, or of how such regulations and interpretations might apply to their individual business model, should first contact FinCENís Resource Center Helpline at 1-800-767-2825, or e-mail FRC@fincen.gov. If further clarification is needed, FinCEN encourages the submission of a request for an administrative ruling. The procedure for submission of administrative rulings can be found at FinCENís Web site.
Stay informed of updates to FinCENís Web site by signing up for FinCEN Updates Ė FinCENís free, e-mail subscription management service designed to keep the financial industry, the media, and the public informed of news, rulemakings, administrative rulings, advisories, and other developments at FinCEN. Users can customize their updates, allowing them to receive e-mails related to the topics to which they have subscribed.
FIN-2014-R001: Application of FinCENís Regulations to Virtual Currency Mining Operations
FIN-2014-R002: Application of FinCENís Regulations to Virtual Currency Software Development and Certain Investment Activity
FinCENís mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.