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Florida Bitcoin Regulation

How Five States Are Approaching Bitcoin Regulation

How Five States Are Approaching Bitcoin Regulation

How Five States Are Approaching Bitcoin Regulation May 16, 2017, 01:58:58 AM EDT By Michael Scott, Bitcoin Magazine Cryptocurrency should be regulated. Cryptocurrency should not be regulated. Cryptocurrency can't be regulated. These are all common refrains emanating from the media these days. Now lawmakers across the United States and around the world are at a crossroads as to what is next in terms of this regulatory space. Bitcoin and other forms of cryptocurrency present a monumental challenge for legislators, requiring a broad understanding of blockchain technology, especially in terms of its impact on tech innovation. Amid assertions that the U.S. is falling behind in terms of Bitcoin regulation , it could be argued that the regulatory picture is becoming clearer in 2017 . Bitcoin Magazine asked Pawel Kuskowski, CEO and co-founder of Coinfirm , and Joe Ciccolo, president of the Illinois-based Bitcoin compliance firm BitAML , to offer some commentary about the regulatory activity taking place in five U.S. states - Washington, Illinois, Hawaii, California and Florida - and what the regulatory landscape may look like in the days ahead. Legislators in Washington state are building momentum around new rules for businesses offering digital currency services. Senate Bill 5013 provides a definition of virtual currency along with disclosure requirements of certain information to consumers. It also would require online currency exchanges within that state to maintain a surety bond. Finally, it offers definitional and clarifying changes for how money transmitters and currency exchangers are regulated under the Uniform Money Services Act. At the time of this writing, this bill, which was introduced in January, had passed both chambers of the state's legislature, clearing it to Continue reading >>

Florida Passes Bill That Jails People For Using Bitcoin

Florida Passes Bill That Jails People For Using Bitcoin

Florida Passes Bill That Jails People for Using Bitcoin Also read: Whats Behind Ripples Extraordinary 20x Growth? Florida Brings Bitcoin Under Existing Money Laundering Laws Florida lawmakers finally passed an April 2017 bill adding the term virtual currency to the states money-laundering statute, reported the Miami Herald . While small, the addition will allow the state to jail criminals using the digital currency to launder money. This bill came in response to a 2016 money laundering case involving bitcoin, where the judge dismissed the charges against Michel Espinoza on the basis of uncertainty regarding how existing laws applied to the new currency. The court is unwilling to punish a man for selling his property to another, judge Teresa Mary Pooler wrote in her official statement. His actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning. According to the Herald, prosecutors are appealing the ruling. Now, with the state one step closer to changing its money laundering statute, they may have more luck putting Espinoza and others like him behind bars. Bringing Money Laundering into the 21st Century And that seems to be the motivation behind passing this new bill: updating current legislation for the modern day economy. House representative Jose Felix Diaz, R-Miami, told the Herald: Cyber criminals have taken advantage of our antiquated laws for too long. Bitcoin bypasses the traditional banking system, and our states laws simply had not caught up to the upsurge in criminality in the world of cybercurrency. Not everyone agrees with this reasoning, however. Economist Charles Evans who testified in the Espinoza case argues that bitcoin is not actually money, making money laundering laws inapplica Continue reading >>

Us Government Is Trying To Get Coordinated In Its Efforts To Regulate Bitcoin

Us Government Is Trying To Get Coordinated In Its Efforts To Regulate Bitcoin

Treasury Secretary Steven Mnuchin testifies to the House Financial Services Committee on "The Annual Report of the Financial Stability Oversight Council" on Capitol Hill in Washington, U.S., February 6, 2018. Treasury Secretary Steven Mnuchin is taking the lead on bringing together federal government agencies to coordinate regulation of cryptocurrencies, the chairmen of two financial regulatory commissions said Tuesday. "The Treasury secretary has been out in front on this. He's formed a virtual currency working group of ourselves, the SEC, the Fed" and the Financial Crimes Enforcement Network, said J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission. He was speaking in response to a question at a hearing on cryptocurrencies held by the Senate Banking, Housing and Urban Affairs Committee. Bitcoin has lost half its value this year after surging 2,000 percent in just 12 months to a record high above $19,000 in mid-December. Sales of new digital coins, called initial coin offerings or ICOs, have raised more than $4 billion in sales of new digital coins for projects based on the same blockchain technology behind bitcoin. However, critics say many of the projects barely exist beyond whitepapers or are outright scams, and both the Securities and Exchange Commission and the CFTC have increased their crackdown on fraudulent schemes. "We've had a number of preliminary conversations and workstreams developed," Giancarlo said. "We are going to be coordinating our various responses. It's begun with just some broad conversations just establishing our different jurisdictions so we're all clear as to what we're doing, and what we're not doing, where the gaps are." Giancarlo added that he and Mnuchin have had a number of one-on-one conversations about virtua Continue reading >>

Florida Lawmakers Want Bitcoin Covered Under Money Laundering Law

Florida Lawmakers Want Bitcoin Covered Under Money Laundering Law

Florida Lawmakers Want Bitcoin Covered Under Money Laundering Law Join our community of 10 000 traders on Hacked.com for just $39 per month. Florida lawmakers want virtual currencies like bitcoin covered under the states money-laundering statute, a change that supporters claim would ensure criminals cannot use Internet-based currencies to conceal financial activities, according to The Miami Herald . Law enforcement officials support the measure but some bitcoin enthusiasts say it will undermine bitcoin. The proposed law was crafted by Miami-Dade cybercrime prosecutors after a judge threw out charges against a man accused of selling $1,500 in bitcoins to buy stolen credit card numbers on the Internet. Miami-Dade State Attorney Katherine Fernandez Rundle said high-tech criminals use virtual currencies to hide their illegal activities. The proposed law ensures fraudsters and traffickers cannot use Internet-based currencies to conceal and transfer illegal profits. Some bitcoin supporters claim the law can undermine the cryptocurrency that could be helpful in promoting trade between Florida and nations like Venezuela that rely more on bitcoin since their own banking systems have crumbled. Charles Evans , an economist at Barry University specializing in bitcoin, said the law sends the message that financial innovation is unwelcome in Florida. Governments in other countries and states that welcome bitcoin will be pleased with Floridas law from a competitive standpoint. A state house committee passed the bill, sponsored by Miami Rep. Jose Felix Diaz, unanimously last week. Two state senate subcommittees have also passed the bill, and a state senate appropriations committee will soon vote on it. Money laundering applies to transactions that conceal funds earned from criminal ac Continue reading >>

Florida Law Passed Friday Targets Criminals Who Use Bitcoin | Miami Herald

Florida Law Passed Friday Targets Criminals Who Use Bitcoin | Miami Herald

The bill was crafted with help from Miami-Dade cybercrime prosecutors. The measure, if signed into law by Scott, adds clarity to how police go after criminals who use virtual currencies to further illegal activities, or disguise ill-gotten money. Nevertheless, Bitcoin advocates said such a new law would have a chilling effect on the use of the virtual currency. Charles Evans, a Barry University economist and virtual currency expert, has long maintained that Bitcoin which is not backed by any government authority is not actually money but nothing more than poker chips bought and sold by users, particularly in areas where banking systems are weak. He criticized Fridays passage of the bill. Before long, we might see coat checks, tickets to Disney World, and discount coupons regulated as money in Florida, Evans said. Authorities across the United States have struggled to figure out how laws apply to Bitcoin, which allows some users to spend money anonymously and can also be bought and sold on exchanges with U.S. dollars and other currencies. Digital currencies allow people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit-card issuers or other third parties. Regulated services such as CoinBase, which operates similarly to PayPal, allow people to buy, sell and use bitcoins. But law enforcement has raised concerns about the currency which can be bought and sold through private users being used in underworld markets. Bitcoins can be used to buy legitimate goods and services through websites and even in brick-and-mortar shops and restaurants. But the currency has also been used to traffic drugs, most notoriously through the Silk Road dark web online network. In another prominent example, a South Florida ma Continue reading >>

Florida May Pass Bill To Introduce More Bitcoin Regulation Under Aml Laws

Florida May Pass Bill To Introduce More Bitcoin Regulation Under Aml Laws

Florida May Pass Bill To Introduce More Bitcoin Regulation Under AML Laws Bitcoin users often get scrutinized by government officials for no apparent reason. In the State of Florida, anyone using bitcoin may soon find themselves as a person of interest in a money laundering investigation. Lawmakers aim to pass a bill that adds virtual currencies to Floridas money-laundering statute. This is not good news for bitcoin users by any means, that much is certain. It is rather strange to learn about this new proposal by Florida policymakers. It is evident regulators want to nip bitcoin use in the bud, especially in the United States. Any currency not controlled or issued by the Federal Reserve poses a threat to the national economy. Then again, bitcoins cant be confiscated, thus regulators have to take a very different route. Ever since a Miami judge rejected a criminal case involving bitcoin, policymakers have been chomping at the bit to curb cryptocurrency use. This new bill is to be considered during the legislative session in Tallahassee. So far, no one knows for sure it will receive any substantial backing, though. While it is true criminal use should never be allowed, this new bill is taking things to the extreme.So far, there is still very little proof of criminals using bitcoin other than demanding it as a payment method for ransomware attacks. Florida Doesnt Like Bitcoin All That Much It is not surprising this bill has been greeted with a lot of criticism. Legislators make it a habit of drafting bills that will eventually force consumers not to use bitcoin at all. Moreover, this bill can make it extremely difficult for any cryptocurrency-oriented service provider in Florida. Plus, this bill clearly states how financial innovation is not welcome in Florida by any mean Continue reading >>

Bitcoin Tax Guide: An Introduction | Investopedia

Bitcoin Tax Guide: An Introduction | Investopedia

Bitcoin Tax Guide: Lost Or Stolen Bitcoins Investors looking to make a move into the digital currency space have several things to learn. They must determine which currencies best meet their needs; they should look into the start-ups, ICOs, and blockchain-related technologies and systems that relate to the digital currency industry; they must keep their assets secure. Like any investment, individuals venturing into the cryptocurrency space must also learn about the tax repercussions of their investment decisions. In this tutorial, well examine the implications of IRS Notice 2014-21, a set of guidelines and rules for investors which was first issued in early 2014 . One of the major implications of IRS Notice 2014-21 is that the U.S. government has decided to treat cryptocurrencies like bitcoin as property instead of as currency. The result is that a wide-ranging group of bitcoin stakeholderseveryone from consumers and merchants to bitcoin miners and service providerswill now fall under the larger umbrella of bitcoin investors in some way or another, and this group will now have to deal with complicated and sometimes daunting reporting requirements. The first thing that well look at in this tutorial is what any individual who has explored the cryptocurrency investment arena should talk about with his or her tax adviser before filing personal tax returns ahead of the April 15 deadline. Lets assume that our prototypical investor Max is married, and he and his spouse made $100,000 in total taxable income for the previous tax year. How should Max report trading gains and losses for bitcoin and any other cryptocurrency investments? How does this relate to purchases that he made with those currencies? If he lost funds in a wallet that was affiliated with an exchange that was h Continue reading >>

State Law & Regulations For Bitcoin Atm Operators: Blockchain And Financial Services Blog | Frost Brown Todd

State Law & Regulations For Bitcoin Atm Operators: Blockchain And Financial Services Blog | Frost Brown Todd

Authored by: William T. Repasky , Jeffery T. Gorham Depending on the state where the Bitcoin ATM operator sets up the business, the operator may or may not need to comply with that states laws, regulations and/or licensing. For operators, the primary state-level matters of concern are typically its state or states of operations money transmitter laws. At the federal law level, Money Services Businesses (MSB) as defined by the Bank Secrecy Act, must register with FinCEN and thereafter comply with the BSAs mandates. For a discussion of the federal law issues, see Federal Law & Regulations for Bitcoin ATM Operators. In addition, nearly all the states have promulgated their own laws and regulations, which will be an additional layer of compliance to be navigated by the Bitcoin ATMs operators. Therefore, Bitcoin ATM operators need to consider both state and federal regulatory requirements. Nearly every state has enacted a licensing scheme governing money transmitters or money services business operating within their borders. In fact, only Montana and South Carolina have opted to not affirmatively adopt such a scheme. Of the other states, 13 states have enacted or proposed laws regarding virtual or digital currency (VC) and its associated MSBs. However, the other states which have not explicitly included VC in its laws will still take the position that MSB activity, regardless of whether it is VC-based, will require licensure and oversight. The following is a discussion of a few states which have affirmatively chosen to require Money Transmitter Licenses (MTLs) for VC MSBs, and other state requirements which may touch and concern Bitcoin ATM operators, with much of these requirements being implemented or proposed in 2017 . Some States May Not Require Registration Some states Continue reading >>

Virtual Currency Law In The United States

Virtual Currency Law In The United States

Virtual currency law in the United States This article has multiple issues. Please help improve it or discuss these issues on the talk page . This article relies too much on references to primary sources . Please improve this by adding secondary or tertiary sources . This article is an orphan , as no other articles link to it . Please introduce links to this page from related articles ; try the Find link tool for suggestions. ( Learn how and when to remove this template message ) United States virtual currency law is the area of financial regulation that applies to the buyers, sellers, and users of virtual currency . This regulatory structure consist of tax regulations and FINCEN transparency regulations between financial exchanges and the individuals and corporations with whom they conduct business. The regulatory and market environment[ edit ] The Internal Revenue Service (I.R.S) describes Virtual Currencies (VC)s as a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value [and] does not have legal tender status in any jurisdiction. [1] Although, electronic payment systems have been part of American life since at least 1871 when Western Union introduced money transfer through the telegraph [2] and in 1914 introduced the first consumer charge-card," virtual currencies differ from these digital payment structures because unlike traditional digital transfers of value, virtual currencies do not represent a claim on value; rather the virtual currency are the value. The National Automated Clearing House Association (NACHA), through the Automated Clearing House (ACH) moves almost $39 trillion and 22 billion electronic financial transactions each year. [3] These electronic transfers of money through the ACH Network Continue reading >>

State Regulations On Virtual Currency And Blockchain Technologies

State Regulations On Virtual Currency And Blockchain Technologies

State Regulations on Virtual Currency and Blockchain Technologies As of this inaugural publication, there exists no uniformity with respect to how businesses that deal in virtual currencies (also known as cryptocurrencies) such as Bitcoin are treated among the states. For these proprietors, often the first question asked when deciding whether to operate within a state is whether existing state money transmitter rules apply to the sale or exchange of virtual currencies. As you will see from the discussion below, most states have not yet enacted regulations that provides virtual currency operators with any guidance on this question. Some states have issued guidance, opinion letters, or other information from their financial regulatory agencies regarding whether virtual currencies are money under existing state rules, while others have enacted piecemeal legislation amending existing definitions to either specifically include or exclude digital currencies from the definition. To use a pun those in the blockchain space should understand, there is a complete lack of consensus as to whether they do or not. The few states that have attempted to enact such comprehensive regulations, including New Yorks much maligned BitLicense scheme, has resulted in a retreat by the industry from either perceived overregulation or attempts by the state to treat virtual currency operators identically with traditional money transmitters that are better equipped to deal with a restrictive, and in their case cost prohibitive, regulatory framework. The authors of this article are hopeful that over the next several years states will begin to craft regulation that balances the dual needs of protecting consumers from businesses operating in the fledgling industry while also promoting continued innovat Continue reading >>

Florida's Money Laundering Statute Won't Affect Most Bitcoin Users

Florida's Money Laundering Statute Won't Affect Most Bitcoin Users

Florida's Money Laundering Statute Won't Affect Most Bitcoin Users Apr 28, 2017 at 12:30 UTC|UpdatedApr 28, 2017 at 15:00 UTC Andrew 'Drew' Hinkes is counsel at Berger Singerman LLP, a business law firm in Florida. Hinkes represents companies and entrepreneurs in state and federal commercial litigation matters, representation of court-appointed fiduciaries and electronic discovery issues. In this opinion piece, Hinkes looks at the potential impact of the recent court decision in Florida that centered in part on the definitions of both bitcoin and money transmission. Florida's legislature is considering a bill that would add "virtual currency" to the definition of "monetary instruments" covered within its anti-money laundering (AML) statute. This proposed revision seems to be a direct reaction to the dismissal order in State vs Espinoza (which remains on appeal), and that would close a loophole in Florida's money transfer statute. But, however ominous it may sound, this change would only impact a fraction of virtual currency activities, so the new definition is likely to have a minor impact on its use in Florida. One of the key innovations of bitcoin and other virtual currencies is the ability to transact pseudonymously. Most virtual currency transactions do not require the transacting parties to know each other, meet face-to-face or directly interact to exchange value. Most often, virtual currency users transact across the internet, through QR codes, trade on exchanges or buy and sell their bitcoins via bitcoin ATMs. For the purposes of this law, the lack of direct communication between parties is critical, and demonstrates the narrow impact of the proposed legislation. Florida's Money Laundering Statute, based upon a similar federal statute (18 U.S.C. 1956 1998) cover Continue reading >>

Licenses - Coinbase

Licenses - Coinbase

Department of Commerce, Community and Economic Development Arizona Department of Financial Institutions Connecticut Money Transmitter License, MT-1163082 Agency: Connecticut Department of Banking District of Columbia Money Transmitter License, MTR1163082 Department of Insurance, Securities, and Banking Georgia Department of Banking and Finance Idaho Department of Finance, Securities Bureau Kansas Money Transmitter License, MT.0000078 Kansas Office of the State Bank Commissioner Kentucky Department of Financial Institutions Louisiana Office of Financial Institutions Department of Professional & Financial Regulation Maryland Commissioner of Financial Regulation Mississippi Department of Banking and Consumer Finance Nebraska Money Transmitter License, 1163082 New Jersey Department of Banking and Insurance New York Department of Financial Services North Dakota Department of Financial Institutions Oregon Department of Consumer and Business Services Division of Finance and Corporate Securities PO Box 14480, 350 Winter St., NE, Suite 410 Pennsylvania Money Transmitter License, 51015 Pennsylvania Department of Banking and Securities Office of the Commissioner of Financial Institutions South Dakota Department of Labor and Regulation Tennessee Department of Financial Institutions Vermont Department of Financial Regulation State of Washington - Department of Financial Institutions West Virginia Division of Financial Institutions Please note that this license does not cover the transmission of virtual currency. If you have a complaint or other concern about Alaska money services licensees, authorized delegates, and the money services provided by money services licensees and authorized delegates, you may contact the Alaska Department of Commerce, Community, and Economic Development Continue reading >>

Florida Passes Law Making Crimes With Bitcoin Money Laundering

Florida Passes Law Making Crimes With Bitcoin Money Laundering

Florida passes law making crimes with bitcoin money laundering Luke Parker , 09 May 2017 - Bitcoin , Law , Usa House Bill 1379 recently passed in Florida, which defines virtual currency and prohibits its use in laundering criminal proceeds. The bill adds the term virtual currency to the definition of monetary instruments under Floridas Money Laundering Act. The legislation is currently in the hands of the States Governor and is expected to be signed soon. The Act defines digital currency as a medium of exchange in electronic or digital format that is not a coin or currency of the United States or any other country. Previously, the Act only applied money laundering to legacy financial transactions of various types, including bank deposits, investments, and wire transfers. The resulting outcome is that criminals using cryptocurrencies will be charged with money laundering as well as the underlying crimimal activity. Cyber criminals have taken advantage of our antiquated laws for too long, claimed Democratic House Representative Jose Felix Diaz, a sponsor of the bill. Bitcoin bypasses the traditional banking system, and our states laws simply had not caught up to the upsurge in criminality in the world of cybercurrency. Passing this legislation brings to rest a multi-year-long series of court proceedings and uncertainty centered around the arrest of a seller of bitcoins. The bill is a direct response to the failure of Miami-Dade police to be able to prosecute Michell Espinoza, a Miami-based website designer and LocalBitcoins seller who was charged with illegally transmitting and laundering $31,000 worth of bitcoins near the end of 2013. At the time, undercover detectives in the Miami PD worked with the Secret Service to set up a sting operation on sellers at the popular, Continue reading >>

Your Guide To Five Major Us States And Their Stance On Bitcoin Regulation

Your Guide To Five Major Us States And Their Stance On Bitcoin Regulation

Your Guide to Five Major US States and Their Stance on Bitcoin Regulation A look at how major cities in the US and their stance on Bitcoin regulation When it comes to cryptocurrency regulations , lawmakers are jousting with different opinions and viewpoints. Some believe that Bitcoin should be regulated , while others are firm that Bitcoin should be left to its own devices . Before legislators can take action, they must understand the nature of Bitcoin and other cryptocurrencies. This is a great challenge because the Blockchain Technology must be understood, as well as its impact on different industries. Even though many experts think that US is a step behind Bitcoin regulation, there seems to be ongoing progress this 2017. Let's take a look at the current regulation landscape in five prominent US States: Washington, Illinois, Hawaii, California, and Florida. Washington legislators have started creating new rules that will encompass Bitcoin transactions. Businesses with digital currency services are covered by these rules. The Senate Bill 5013 clarifies the definition of Cryptocurrency and includes various disclosure requirements on consumer information. The bill will also require online currency exchanges in Washington to maintain a surety bond. The bill was introduced in January and its already cleared to be sent to Governor Jay Inslee. Speculations about the bill are mostly positive. Despite this regulation progress, some Cryptocurrency-based startups are having doubts operating in the state. Washington has also applied heavier cybersecurity frameworks. When Secretary Bryan A. Schneider of the Illinois Department of Financial and Professional Regulation (IDFPR) announced a new initiative that contains several Cryptocurrency implications, some factors were clarified Continue reading >>

Can Bitcoin Be Regulated? U.s. Courts Are About To Decide

Can Bitcoin Be Regulated? U.s. Courts Are About To Decide

Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Can Bitcoin Be Regulated? U.S. Courts Are About to Decide Federal judges consider whether cybercurrency is a security Orange-grove contracts, earthworms have been deemed securities BlackRock Says Bitcoin `Not an Investable Asset Class' The U.S. is trying to regulate cybercurrency offerings. Its still unclear whether it has the authority to do so. Federal judges in Brooklyn, New York, are about to rule on the question. In doing so, they could determine whether Bitcoin and other stateless currencies are securities that can be regulated like stocks or bonds. Courts across the country are likely to consult these rulings when considering other cybercurrency cases. If its not a security, then what is it? said Peter Henning, a former SEC and Justice Department lawyer who isnow a professor at Wayne State University Law School. In what is believed to be the first criminal case focusing on an initial coin offering, Brooklyn businessmanMaksim Zaslavskiy was charged in a case unsealed in November with promoting digital currencies backed by investments in real estate and diamonds that U.S. prosecutors said didnt exist. The Securities and Exchange Commission also sued. U.S. District Judge Raymond Dearie said hell allow Zaslavskiys lawyers in both the criminal and civil cases to Continue reading >>

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