Bitcoin To Be Regulated Under US Money Laundering Laws 439
Newsubmitter davek writes with news that the U.S. will be applying money-laundering laws to Bitcoin and other 'virtual currencies.'
"The move means that firms that issue or exchange the increasingly popular online cash will now be regulated in a similar manner as traditional money-order providers such as Western Union Co. WU +0.17% They would have new bookkeeping requirements and mandatory reporting for transactions of more than $10,000. Moreover, firms that receive legal tender in exchange for online currencies or anyone conducting a transaction on someone else's behalf would be subject to new scrutiny, said proponents of Internet currencies. 'I think it's inevitable that just like you have U.S. dollars used by thieves and criminals, it's sadly inevitable you will have criminals use a virtual currency. We want to work with authorities,' said Jeff Garzik, a Bitcoin developer. Still, law enforcement, regulators and financial institution have expressed worries about the hard-to-trace attributes of virtual currencies, helping trigger this week's move from the Treasury's Financial Crimes Enforcement Network, or FinCen."
Re:They don't get it (Score:2, Funny)
Bitcoin works? Here I thought it was just good for giving you heatstroke, buying child porn or drugs, and breaking when there are more than about 70,000 transactions across the network per day (compared to Visa's 300 million). The currency of the future, ladies and gentlemen!
Nota bene: I would have mentioned buying slim jims and ramen, but the self-made captains of industry running Bitmunchies weren't able to turn enough of a profit and shut down. Speaking of Bitcoin businesses, how's Roger Ver's Bitcoin store doing? Still about $600,000 shy of the $850,000 it'll need to make in Q1? Up, up, up!
Re:They don't get it (Score:5, Funny)
Finally someone gets it, and explains why the EU is failing. All those people earning and spending euros, never converting them to dollars, wasting their time, getting nothing out of it. Don't they understand? If they don't convert to dollars, they're useless. Fortunately for the euro, they can convert to dollars, but so few europeans take advantage of this to validate to the euro. Thus, it never gains legitimacy.
Re:They don't get it (Score:5, Funny)
Not really, USD are taken by anybody in the US that lends money as well as for taxes. BTC are basically just useful by a small number of people that aren't very good at math. The rest of us stick to currency and barter of things that actually exist.
Now, if BTC was a mandatory option for payment and was likely to continue that way into the future, then it would be a closer analogy. But, even there with the fixed maximum supply and the curve at which they're being introduced, being what they are, even then it would be a stretch.
Re:They don't get it (Score:3, Funny)
You need them to pay taxes, can't do that with bitcoins.
Re:They don't get it (Score:5, Funny)
The Euro is another currency that millions of people accept and pay taxes with
Except the Greeks!
Re:They don't get it (Score:3, Funny)
I'm in eastern europe,
There's your problem right there. You should move to a more civilized and stable area, like Somalia.
Your solution to the Scrabble Problem of the day (Score:5, Funny)
Problem: Someone just placed a W tile. You have these tiles available to play: H, O, O, S and H.
Your proposed solution: spell the word "HOHOWS".
Analysis: That's not a real word.
Re:They don't get it (Score:4, Funny)
We don't need fiat USD. We can purchase the ever growing number of products&services with BTC without the use of USD
Haha, yes, I've seen the videos. "Watch me buy gas with bitcoins!" *transfers bitcoins to friend, waits 20 minutes, friend buys gas with USD*