January 2014

Dear [ ]:

This responds to your letter of June 1, 2013, seeking an administrative ruling from the Financial Crimes Enforcement Network (“FinCEN”) on behalf of [the Company], about [the Company]’s possible status as a money services business (“MSB”) under the Bank Secrecy Act (“BSA”). Specifically, you ask whether certain ways of disposing of the Bitcoins mined by [the Company] would make [the Company] a money transmitter under the BSA.

Dear [ ]:

This responds to your letters of May 21, 2013 and July 10, 2013, seeking an administrative ruling from the Financial Crimes Enforcement Network (“FinCEN”) regarding the status of [ ] (the “Company”) as a money services business (“MSB”) under the Bank Secrecy Act (“BSA”). Specifically, you ask whether the periodic investment of the Company in convertible virtual currency, and the production and distribution of software to facilitate the Company’s purchase of virtual currency for purposes of its own investment, would make the Company a money transmitter under the BSA.

Good morning. I am honored to be joining you again this year. I recently had the opportunity to meet in Washington with SIFMA’s AML and Financial Crimes Committee and we had a very productive discussion. I know that some of the threats that are on your industry’s radar screen – threats such as securities fraud, market manipulation, and computer intrusion, are many of the same threats we are focusing on at FinCEN. It was helpful to hear your colleagues’ perspectives on these threats, and it is encouraging to know we are working towards many of the same goals in this area.