Links in “Virtual Currency”

Recent news that New York plans to regulate Bitcoin and other digital currencies and that the CEO of a Bitcoin exchange was arrested on money laundering charges suggest that bankers should be keeping an eye on the viability of digital currencies and considering how (and if) they should approach them. [2/3]

FinCEN provides two rulings associated with convertible virtual currency (i.e., Bitcoin). Rules note that self-"mining" for one's own purpose or purchasing and selling as investment for company's own benefit do not cross into definitional money transmitter under BSA. [1/31]

Economics professor presents why Bitcoin really matters. [1/28]

Treasury Secretary Jacob J. Lew calls for more time to assess Bitcoin to make sure it does not become an avenue to fund illegal activities, such as terrorism. [1/24]

Companies seeking ways to move digital currency into the mainstream with FDIC-like backing, such as a London company that offers Bitcoin accountholders insurance through Lloyd's of London or Boston company that plans to allow investors to insure bitcoins through derivatives trading. [1/23]

While it is important to recognize that innovation is a vital part of U.S. economy, the financial system must also address the money laundering or terrorist finance concerns of Bitcoin. [12/27]

Opens today in a Vancouver cafe, usinging a palm scanner to authenticate customers, allows users to load up to 3,000 Canadian dollars into the ATM in exchange for Bitcoins. [10/29]

Department of Homeland Security seized a $2.9 million account at Veridian Credit Union in Iowa claiming that the Bitcoin and Dwolla client account owner, Mt. Gox, was operating an unlicensed money transmittal business. [8/21]

With attacks on payday lenders, Bitcoin, consultants, and debt collectors, NY's Lawsky is leading many initiatives and in some cases "shaming less aggressive regulators." [8/15]

Regulators figuring out how to handle virtual currency providers. [6/17]