FinCEN Ruling Bodes Well For Bitcoin Mining

FinCEN issues Bitcoin-friendly ruling for miners (CoinText, 27 Dec 2013) – The US Department of Treasury, Financial Crimes Enforcement Network ( FinCEN ) has issues ruling that clears up an issue for Bitcoin mining. The issue involves whether someone who mines Bitcoins for themselves can trade them for cash at an exchange or spend them directly without being classified as a Money Services Business (MSB) and register with FinCEN. Many miners were concerned that the rules would require compliance with extensive regulations (see Jerry Brito, FinCEN explicitly stated in a personal letter that bitcoin miners need to register with FinCEN ). The rules could require miners to have things like an auditor on staff making it impossible for individuals to mine Bitcoins and stay within the regulations. Atlantic City Bitcoin operates several ASICs miners at its facility in New Jersey and asked FinCEN to clarify the rules. The owner of AC Bitcoin is a former federal employee who worked on anti-terrorism and security programs and took early retirement to work on Bitcoin. According to the formal Administrative Ruling miners do not have to register with FinCEN as previously thought as long as they mine for themselves. AC Bitcoin had frequent contact with FinCEN staff and pointed out that if FinCEN had required miners to register they would need to comply with the “Administrative Procedures Act” which would require them to consider public comments before making the requirement.

Provided by MIRLN.

Image courtesy of