Bitcoin Fungibility, Mixing and the Authorized Limits on ...

Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual Currencies

https://www.systems.cs.cornell.edu/docs/fincen-cvc-guidance-final.pdf
FinCEN Guidance report may have implications for mixing protocols/services for Bitcoin (such as Wasabi wallet).
4.5.1. Providers of anonymizing services for CVCs Providers of anonymizing services, commonly referred to as “mixers” or “tumblers,” are either persons that accept CVCs and retransmit them in a manner designed to prevent others from tracing the transmission back to its source (anonymizing services provider), or suppliers of software a transmittor would use for the same purpose (anonymizing software provider).
4.5.1(a) Anonymizing services provider An anonymizing services provider is a money transmitter under FinCEN regulations. The added feature of concealing the source of the transaction does not change that person’s status under the BSA.
Relevant to Monero because the providers (or users) of the opt-in tumble/mixing services for Bitcoin may run into some legal trouble if this report is anything to go by. Would further solidify Monero's necessary existence.
Also
4.5.2. Providers of anonymity-enhanced CVCs [convertible virtual currencies]. A person that creates or sells anonymity-enhanced CVCs designed to prevent their tracing through publicly visible ledgers would be a money transmitter under FinCEN regulations depending on the type of payment system and the person’s activity.62 For example:
(a) a person operating as the administrator of a centralized CVC payment system will become a money transmitter the moment that person issues anonymity enhanced CVC against the receipt of another type of value
(b) a person that uses anonymity-enhanced CVCs to pay for goods or services on his or her own behalf would not be a money transmitter under the BSA. However, if the person uses the CVC to accept and transmit value from one person to another person or location, the person will fall under the definition of money transmitter, if not otherwise exempted.
(c) a person that develops a decentralized CVC payment system will become a money transmitter if that person also engages as a business in the acceptance and transmission of value denominated in the CVC it developed (even if the CVC value was mined at an earlier date). The person would not be a money transmitter if that person uses the CVC it mined to pay for goods and services on his or her own behalf.
submitted by Galwoa to Monero [link] [comments]

Hi Departments of Financial Services, Here is the proposed Virtual Currency Regulator Application

In developing this regulatory framework, we have sought to strike an appropriate balance that helps protect individuals, consumers, businesses, services, and innovators, while rooting out unscrupulous and over-reaching regulatory activity. These regulations include provisions to help safeguard customer assets, protect against unwarranted account freezes or seizures, and prevent the regulatory abuse of virtual currencies from unethical activity, such as widespread warrantless monitoring, disclosure of private information, dictation as to how users engaged in P2P or non-fiat transfers can spend their money, and scapegoating.
We recognize that not everyone in the regulatory community will be pleased about the prospect of what could be seen as a barrier to their regulatory authority. Ultimately, though, we believe that setting up common sense rules of the road is vital to the long-term future of the virtual currency industry, as well as the safety and soundness of customer assets. (We think the situation in New York, for example, made that very clear.) Moreover, given that P2P decentralized networks are stateless, headless, community consensus driven bodies, we also have a moral obligation to move forward on this framework.
Entities are considered "interested in regulating virtual currencies" if:
... in a manner that would affect any current or prospective member of the human race.
Entities "interested in regulating virtual currencies" must:
As the first decentralized community to put forward specially tailored rules for virtual currency regulators – continued public feedback will be an important part of finalizing this regulatory framework. We look forward to carefully and thoughtfully reviewing public comments on our proposal.
submitted by Try_AgainNY to Bitcoin [link] [comments]

There is a 30 day comment period for the current Bitlicense proposal. Unless there are substantial changes, New York will be a Bitcoin dead zone

The 30 day comment period starts next week. Bitlicense, as proposed will force most companies that store customer BTC deposits to block New York IP addresses. There is very little chance that Lawsky will make any further changes to it, so what will this mean for Bitcoin around the world?
EDIT, as a reminder:
This is how the Bitlicense will affect Bitcoin businesses, taken from here:
http://www.reddit.com/Bitcoin/comments/2aycxs/hi_this_is_ben_lawsky_at_nydfs_here_are_the/cizyqyz
(I've added modifications in light of changes in the new proposal and information that I found was missing in the original write-up)
Entities are considered dealing in virtual currencies if:
.. to any resident in New York. Web services, even those incorporated overseas, must either comply or block access for NY users. (200.2n)
Entities 'dealing in virtual currency' must:
Added:
The (only?) good news: Merchants do not need a BitLicense to accept Bitcoin for a good or service. (200.3c2).
> This post was created for general guidance, and does not constitute legal advice. You should not act upon the information contained in this publication without obtaining specific advice from a professional. No representation or warranty (expressed or implied) is given as to the accuracy or completeness of the information contained in this post.
EDIT 2, targetpro suggested expressing any concerns you may have about the proposed regs to the NY Dept. of Finan. Services:
submitted by aminok to Bitcoin [link] [comments]

Building a United Platform

No matter which coin you're backing (or how many), the regulations coming out of New York State have large, overreaching and severe consequences for all cryptocurrencies.
You can read the proposed BitLicense Regulations here.
AmericanBitcoin has put together a TL;DR of the proposed reglations
In response, you can read the in-progress GitHub Fork of those same regulations here.
If you'd like to see a quick breakdown of examples of what's wrong with the proposed regulations, I highly recommend you read this comment by MrMadden over in /Bitcoin, which is utterly fantastic.
Instead of standing 'against' these regulations, let's stand for:
The problems, right now:
These regulations are vague in some important areas and could have unintended consequences.
For example, here's a great breakdown from goldcakes (originally made here)
Entities are considered dealing in virtual currencies if:
.. to any resident in New York. Web services, even those incorporated overseas, must either comply or block access for NY users. (200.2n)
Entities 'dealing in virtual currency' must:
The (only?) good news: Merchants do not need a BitLicense to accept Bitcoin for a good or service. (200.3c2).
This post was created for general guidance, and does not constitute legal advice. You should not act upon the information contained in this publication without obtaining specific advice from a professional. No representation or warranty (expressed or implied) is given as to the accuracy or completeness of the information contained in this post.
submitted by GoodShibe to CryptosUnited [link] [comments]

En Análisis Ep. 22: FinCEN Files, pool de minería del ... How To Use Bitcoin Mixers - FoxMixer Withdraw 0.05 BTC from Microsoft Bitcoin Miner Part 1 ... Episode 26: Bitcoin is a safe haven asset How to Use Bitcoin Mixer Video Guide 2020 (Updated) - YouTube

Banks will rarely know if a customer uses a mixer or anonymizer but FinCEN notes that using mixers and anonymizes is a financial crime red flag. That’s because the purpose of mixers is to obfuscate the transactor behind a Bitcoin transaction. FinCEN also lists as a red flag, bank customers with previous criminal records for drug trafficking ... The other way to “clean” a bitcoin is to break the link between the bitcoin’s past and current transactions by running it through a tumbler/mixer, or CoinJoin. Tumblers and mixers are custodial: This means that when one uses a tumbler or mixer, they must give control of their coins to another party, and trust that this party will return ... A court case is underway in the United States that could become a watermark decision for Bitcoin transaction privacy and compliance law. Larry Harmon of Ohio — who, incidentally, owns the Coin Ninja media site — was recently charged and arrested for money laundering some 350,000 bitcoin (roughly $300 million at the time of the indictment) through his custodial mixing service, Helix. Harmon ... Legal Bitcoin regulation and AMLD5 Before institutional investors can get their slice of the Bitcoin cake, digital currencies need more regulation. The first concrete step towards the regulation is the Fifth Anti-Money Laundering Directive, or short AMLD5, adopted by all EU member states on January 1, 2020. One of these service is usually known as a bitcoin ‘mixer’ or ‘tumbler.’” ... FinCEN, the Monetary Crimes Enforcement Community, a bureau of the US Division of the Treasury, has seemingly clear steerage on what is likely to be inferred as a distinction between custodial and non-custodial mixers.

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En Análisis Ep. 22: FinCEN Files, pool de minería del ...

Baltimore, MD- Not many people are talking about cities mining Bitcoin, but we are! The US government is down with Stable coins? What does it mean to have 10... Eugene & Samantha –Providing news, insight, and commentary on the cryptocurrency space Follow Us @ https://twitter.com/coffee_bitcoin https://www.facebook.co... Bitcoin Mixer (Tumbler, Blender) is something that helps you to shuffle your bitcoins using our algorithms and to secure your identity. Bitcoin mixer: https:... "First they ignore you, then they ridicule you, then they fight you, then you win." -- Mahatma Gandhi Buy stock in The Bitcoin Channel and promote Bitcoins: ... Ohio Resident Charged with Operating Darknet-Based Bitcoin “Mixer” ... FinCen Guidance: Application of FinCen’s Regulations to Certain Business Models Involving Convertible Virtual ...

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