Kenneth Rijock

Kenneth Rijock

Tuesday, July 2, 2013

REPORTS SAY BITCOIN HAS REGISTERED AS AN MSB WITH FINCEN



Media reports claim that Bitcoin, the virtual currency, has registered as a money service business, with the Financial Crimes information Center, FinCEN. Assuming that this is true, it may signify that the virtual currency industry is ready to concede that it must be regulated, meaning that banking best practices compliance will be necessary. How exactly will that be accomplished online, I wonder ?

One final question; since FinCEN registration must be accomplished within six month of beginning operation, and Bitcoin has been around for much longer than that, will charges of operating an unlicensed MSB be filed, as was done with Rosemont Financial ? The Rosemont case was a nightmare for that company's clients , as they had massive funds seizures, resulting in costly settlements with DOJ.


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