US Treasury Department issues virtual currency regulations

By on March 22, 2013, 4:30 PM

The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has enforced regulations on firms that issue or exchange virtual currencies like Bitcoin. The guidelines are similar to those in place for traditional money order facilities like Western Union, requiring new booking methods and reporting of transactions greater than $10,000.

Bitcoin’s level of popularity, especially among gun runners and drug dealers, is on the rise. Up to this point, there’s been zero regulation on the virtual currency as regulation would essentially admit that it’s legitimate in some shape or form – something the US government isn’t really interested in doing.

FinCEN was clear to point out the differences between real and virtual currency. The former is described as the coin or paper money of the US or any other country designated as legal tender in circulation and is customarily used and accepted in the country of issuance.

Virtual currency, on the other hand, is said to be a medium of exchange that operates like currency in some environments but doesn’t carry the full attributes of real currency. It doesn’t have legal tender status in many jurisdictions and acts as a substitute for real currency or has an equivalent value in real currency.

All of that said, one has to wonder if these new guidelines will have any real impact on Bitcoin as a whole. The nature of Bitcoin makes it untraceable so unless firms are coaxed into cooperation, it’s hard to imagine the regulations being enforced.

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1 person liked this | KG363 KG363 said:

"especially among gun runners and drug dealers"

Yes, BitCoin is used for nefarious activities, but that is only part of what bitcoin is. takes bitcoin. Would you file them under gun runner or drug dealers? Bitcoin is legitimate and is becoming more mainstream. The first hedge fund specializing in bitcoin has recently been started. As people look at Cyprus and Spain, they flee to bitcoin because it was created to essentially be a commodity based currency; a currency that is not operated under the control of a central bank and is instead controlled by the fair market place. The United States government is considering action because bitcoin is a threat to them. The US dollar, along with just about every major currency in the world, is a fiat based currency that is backed by nothing more than 'full faith and credit'. Bitcoin is backed by the market. There is real value, not just perceived value.

3 people like this | miguel11 said:

The US Treasury Department is controlled by banksters (Goldman Sachs). Bitcoin is a threat to them because it is decentralized, they do not control it, and as a consequence they cannot reduce its purchasing value through quantitative easing (money printing). I am talking about inflation which is a covered form of taxation. Yes, the US government taxes people by money printing which create inflation. That is not the case with Bitcoins.

Now, the banksters and the puppet governments they control around the world are conspiring to take the peoples' money from their bank accounts by limiting the amount of money they can withdraw and by confiscating a percentage of their savings. Point in case, Cyprus. New Zealand, France and other countries are considering the same strategy in other words, banksters and governments cannot be trusted.

With all the governments of the world engaging in quantitative easing (currency wars) to bring investments into their countries people should act to protect their life saving by buying bitcoins. There is only one way bitcoins will go and that is up. Max Keiser and others like him are forcasting a $100 to $1000 bitcoins per dollar due to inflation and demand. People will try to find ways to protect themselves from corrupt banksters acting through their governments.

Now, the US Government and the banksters who control it, will use the excuse of drug trafficking and guns dealing to try to control or destroy, if they cannot control it, a form of currency that cannot be manipulated by central banks but the markets. The excuse is always the same, like in the case of the war on terrorism, which is an excuse to create a police state at home and perpetual war abroad or the war on drugs which is an excuse to give 10-15 years of prison to marijuana users. Now the new excuse is that is been used by drugs and arms dealers. Excuse me, but didn't HSBC and other banks found guilty of money laundering and paid a $1.9 billion fine. We are talking here about banks who launder money for MEXICAN DRUG CARTELS, you know they guys who put massive beheading of people in YouTube and move huge quantities of arms from the US to Mexico. There you see the double standard, no one in those banks went to jail and they just had to pay a fine.

So do not fall for the fear mongering of the US Treasury Department about Drugs and Arms dealers money laundering when in reality they are the greater pushers of them all.

spencer spencer said:

Yeah I agree with Miguel, they will try to hurt open source alternative currency opposed to their corrupt currency.

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