FinCEN Issues Guidance on Convertible Virtual Currencies

The Financial Crimes Enforcement Network today issued guidance on how its regulations apply to money transmission involving convertible virtual currencies. FinCEN said the guidance does not impose new regulatory requirements but rather consolidates existing regulations, administrative rulings and guidance.

The guidance covers the application of FinCEN’s money transmission to several business models involving convertible virtual currencies, including P2P exchangers, virtual wallets, various kinds of wallet providers, CVC kiosks, decentralized applications, anonymity-enhanced transactions, payment processors and internet casinos.

The guidance also lists specific business models involving virtual currencies that may be exempt from the definition of money transmission, including currency trading platforms, decentralized exchanges, initial coin offerings, virtual currency miners conducting transactions with their own currency and transmission by mining pools and cloud miners.