Once again reviewing the official statements on and about bitcoin that has been recently issued by many countries, it is important to emphasize that none of them, even the most negative and dangerous, include some kind of tools and instruments that might prevent the users from bitcoin transactions and ban the currency in general. Of course, an attentive might oppose that the authorities and the governmental financial institutions set a mod and determine the weather of economy, but he should admit that no regulation in form of laws, standards or directives currently were issued by any country around the world. There is still a lack of policy supported by all organizations forming a state.
The next step, however, was performed by the US FinCEN or the Financial Crimes Enforcement Network. The FinCEN warned companies working with bitcoin or providing crypto currency services of the necessity to correspond to the federal money transmission laws. Not every States-based company has already received the letter, but will definitely have to open such one in the nearest future. The main aim of this activity is to prevent or even terminate existing money-laundering processes with the digital currency.
Everyone remembers the Senate hearing that took place in November of the current year. The spokesperson and head of the network Jennifer Shasky Calvery claimed that biotin business have to go through three important steps to feel free to operate. The first step is to obtain a registration by FinCEN. The second step is to apply anti-money laundering procedures and rules. And at last – to final action to be performed is clear bookkeeping for future auditing.
One of the recipients of the warning mails was Mike Caldwell, the owner Casascius Coins. The company developed and manufactures minted physical units of bitcoin with private keys embedded within. Mr. Caldwell decide to terminate the production for some indefinite time till more features of the FinCEN activity will be present.
The shocking thing is that this kind of manufacture was considered by the network as a money transmission business, which proves no similarities at all. The current statistics say that only 35 companies succeeded in registering by FinCEN, but the hugest problems will face Mt.Gox based in Japan. The exchange service was unable to register as money transmitting company and even willing to do that it already has an illegal status.
At the present moment 48 states from 50, excluding South Carolina and New Mexico, have laws prescribing to register money transmitting companies that is also relevant for many bitcoin businesses. Now the Department of Financial Services is thinking about some special allowance that might be issued to online money businesses to make them legitimate.
The happening in the USA might be described as the first attempt to regulate the bitcoin finance environment with some acceptable instrument. Still, for success and relevance only consultations with the crypto currency activists and entrepreneurs might bring a positive result that will not harm the existing balance of the system.