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FinCen Reaffirms its Intent to Apply Strict Controls to the Virtual Currencies

FinCen Reaffirms its Intent to Apply Strict Controls to the Virtual Currencies

In two of its most recent guidance response letters, FinCen reaffirms its intent to apply strict controls to the virtual currency world.  In these latest examples you can plainly see how they are interpreting applicability of guidance to open market startups providing significant detail to support their assertion of applicability for BSA rules.  Startups in the space will do well to assume these obligations and factor these issues into their deployment models and regulatory obligations if they are to mitigate market, regulatory, and investor risks.

You can find this information in two FinCen PDFs below:

FIN-2014-R011: http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R011.pdf  

FIN-2014-R012: http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R012.pdf