This guidance was issued to “provide clarity and regulatory certainty for businesses and individuals engaged in an expanding field of financial activity.” Or put another way, FinCEN explains who exactly they intend to regulate.
FinCEN covers their bases here discussing “users, administrators, and exchangers… persons creating, obtaining, distributing, exchanging, accepting or transmitting” virtual currencies, both centralized and de-centralized, e-currencies and e-precious metals.
FinCEN sees those dealing in virtual currencies as their regulatory responsibility
Users, and Bitcoin miners seem to be exempt from regulation for the moment
Buying or selling virtual currencies for “any reason” can make you a money transmitter and subject to FinCEN regulation
Virtual currency dealers are NOT necessarily foreign exchange dealers
FinCEN rules can also apply to those dealing in e-precious metals
However, Prepaid Access rules do NOT apply to virtual currencies
Monetas is building software for a decentralized financial and legal system that is less dependent on traditional bankers and lawyers.
The business’ founders, Chris Odom (Fellow Traveler) and Johann Gevers aim to make this ‘financial system 2.0’ possible by developing commercial versions of the Open Transactions digital finance library. This software will allow digital finance entrepreneurs to startup micropayment services, financial markets, community currencies, escrow services, and many others all without depending on the traditional banking or legal system.
Johann, Monetas’ CEO, recently shared with me his thoughts on finance, his belief in decentralized systems and his plans for Monetas.
Bernard von NotHaus, creator of the Liberty Dollar and ‘domestic terrorist’ is currently awaiting sentencing and faces more than 20 years in prison. Last week the NY Times published the below interview with Mr. von NotHaus, Prison May Be the Next Stop on a Gold Currency Journey.
This piece was recently sent to me by “an old radical.” The message is perhaps a bit harsh, but I have to admit, all I can do is grimace and nod in agreement to this thesis… “Bitcoin and state banking systems are born enemies: only one can survive. If you are imagining that they can peacefully coexist, you are fooling yourself.”
GLBSE is a stock exchange for shares of companies denominated in Bitcoins. Late last week, without warring, the exchange was closed. “Nefario”, the owner of the website, shut it down with no explanation given.
Bad economic times and capital controls go hand in hand. In 1933 FDR used Executive Order 6102 to confiscate US citizen’s gold as mentioned in the above video. The International Emergency Economic Powers Act (IEEPA), means the same thing could happen again today.
Extreme capital controls aren’t just a possibility, they are a reality in a many parts of the world, particularly Argentina.