FinCEN Guidelines

By on March 18, 2013
FinCEN US regulation compliance virtual currency

Regulatory guidelines for virtual (digital) currency were issued last week by the US government agency known as the Financial Crimes Enforcement Network (FinCEN).

The regulations say that digital currencies like bitcoin are to be treated essentially as foreign currencies. Companies that exchange digital bitcoins for real money will have to comply with the same regulations as traditional currency exchangers — namely, they must verify the identity of anyone exchanging money for bitcoins and report large transactions to the government, and register as a money services business or money transmitter.

Using bitcoins to purchase goods, however, is specifically exempted.

“A user who obtains convertible virtual currency and uses it to purchase real or virtual goods or services is not… under FinCEN’s regulations,” the guidance reads.

 

Full copy of the FinCEN guideline: http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdf

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