Archive for March 20th, 2013

The Future of Bitcoin

The latest guidance from US Leviathan’s Financial Crimes Enforcement Network (FinCEN) is a leaf ripped straight out of Moldbuggian prophecy. The target acquisition revealed in Administrators and Exchangers of Virtual Currency, section c. De-Centralized Virtual Currencies could not possibly be clearer:

A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by their own computing or manufacturing effort.

A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.

[See Fotrkd’s link feast in this comment thread]

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March 20, 2013admin 26 Comments »