Regulatory Alerts2014-01-30
Application of FinCEN’s Regulations to Virtual Currency Mining Operations
The Financial Crimes Enforcement Network issued an administrative ruling clarifying that virtual currency mining operations are not Money Services Businesses when the mined currency is used solely for the user's own purposes. The agency determined that activities such as purchasing goods, paying debts, or converting currency for investment do not constitute money transmission because they lack the acceptance and transmission of funds for the benefit of others. However, the ruling warns that transferring mined currency to third parties at the direction of sellers or creditors may trigger money transmitter status and associated regulatory obligations.
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