U.S. Regulators Battle Bitcoin Businesses for Control

The fine line drawn by Fin-CEN can get very squiggly. In other words, Fin-CEN claims jurisdiction over your transactions whether you handle U.S. currency directly, or not, as well as “any value that substitutes for currency,” with the intent and/or effect of transmitting currency?” That is as wide of a net as they can caste, and good luck beating them in any U.S. court. No wonder many corporations are bailing out of the U.S. altogether, and are setting up shop in the Cayman Islands, Ireland, and anywhere else where excessive taxation and/or regulation haven’t run amuck.

Russia is preparing to ban Bitcoin outright going forward, but the U.S. looks to be more surreptitious about its approach to Bitcoin. They may not ban Bitcoin outright, but will over-regulate the companies at fiat currency touch points and look to squeeze out this potential competition through the back door. And any holes in their game can be filled with a stroke of a pen and conjured-up agency within a year’s time. What was legal last year can easily be made illegal the next.

Source: www.cryptocoinsnews.com

If a consumer purchases a merchant good with a credit card and that payment goes to a third party, which then transfers the equivalent amount of Bitcoin to the merchant, that service is also considered money transmission.

See on Scoop.itData Nerd’s Corner

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