I learned that it was a Casascius coin, one of roughly 3,500 minted by a Bitcoin user of the same name before the US Treasury Department shut him down in 2013 for failing to have
a federal money transmitter license.
Not exact matches
In part one, we learned about the
federal requirements for
money transmitters.
In fact, to support virtual currency businesses, Coin Center strongly advocates for a
federal licensing system for
money transmitters rather than the state - by - state licensing that is currently standard.
Brian's regulatory advisory work extends to insurance, banking and
money transmitter laws, the Dodd - Frank Act, the National Bank Act, the Bank Holding Company Act, the FDIA, the Insurance Holding Company System Regulatory Act, U.S. securities laws, the Basel 3 risk - based and leverage capital rules, NAIC's RBC rules, the Insurers Rehabilitation and Liquidation Act, BSA / AML and OFAC rules,
federal and state privacy rules (including GLB restrictions), FCRA, EFTA and Regulation E, and Durbin / Regulation II.
Whether you are a
money transmitter with a formal written AML program or not, one of the first demands you are likely to receive in any
federal or state inquiry is to produce a copy of your AML program and policies as well as your customer identification procedures and screening protocols.
Federal and state laws require people to be licensed as
money transmitters if they transmit funds from one person to another.
Because he was not licensed as a
money transmitter in his state or with the Financial Crimes Enforcement Network, each transaction violated state and
federal law.
US lawmakers continue to wrestle with how to approach cryptocurrencies, as a
federal judge says the likes of bitcoin can be treated as commodities by the CFTC, FinCEN says
money transmitter rules apply to ICOs, and Wyoming's state legislature clears a bill exempting some crypto assets from securities laws.
For example, one advisory point states «an administrator or exchanger that accepts and transmits a convertible virtual currency or buys or sells convertible virtual currency for any reason is a
money transmitter under
federal regulations and therefore should be registered as a
money services business.»
This week a
federal judge ruled that cryptocurrencies can be treated as commodities by the CFTC (Commodity Futures Trading Commission); Wyoming's state legislature cleared a bill exempting some crypto assets from securities laws and FinCEN (the Financial Crimes Enforcement Network) said
money transmitter rules apply to ICOs.
«Any group or individual developer who both (A) sold newly created tokens to buyers (i.e. had an ICO) involving U.S. residents and (B) failed to register with FinCEN as a
money transmitter, and perform the associated compliance KYC / AML obligations, can be charged under a
federal felony criminal statute, 18 U.S.C § 1960, with unlicensed
money transmission.
That means bitcoin exchanges like Tradehill would have to register as a
money transmitter with the
federal government.