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Bitcoin Red Alert! U.S. Treasury Announces Money Laundering Rules Apply To "Virtual Currencies"

You didn't think the Treasury was going to just let the bitcoin business develop outside the system, did you?

EPJ | Friday, March 22, 2013

WSJ reports:

The U.S. is applying money-laundering rules to "virtual currencies," amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities.

he move means that firms that issue or exchange the increasingly popular online cash will now be regulated in a similar manner as traditional money-order providers such as Western Union Co. WU 0.00% They would have new bookkeeping requirements and mandatory reporting for transactions of more than $10,000.[...]

The arm of the Treasury Department that fights money laundering said Monday that the standard federal banking rules aimed at suspicious dollar transfers also apply to firms that issue or exchange money that isn't linked to any government and exists only online.

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Nobody escapes govt oppression

.

Bitcoin is above them

No firm issues Bitcoin. No one owns Bitcoin. No one manages Bitcoin. Everyone does. Exchange of bitcoins is anonymous and unless a user chooses to involve Dwolla, the government has no way of knowing they have ever occurred at all. They can not control currency forever. All bark and no bit/e.

This is just FUD

This is just FUD. The money launderying regulations and laws apply specifically to entities that profit from converting the currency. There are currently none that exist. Bitcoin currency exchanges are free. This doesn't affect anyone.

so the government goes to

so the government goes to steal the money out of accounts in Cyprus, and these dolts think bitcoin is safe.... lol.....

Gold and Silver as Money

Gold and Silver are great for storing wealth. However, I would suggest that their appeal for being themselves used for exchanging wealth went away a long time ago. Having a piece of paper saying you have an ounce of gold/silver in a vault is no more safe than having a FED note. Unless you can enroll others to accept payment in gold or silver (physical coin made of such), they are useless as money.
The point I'm trying to make is to consider utility / convenience / acceptance among piers.
Bitcoin is a means of facilitating the exchange of wealth. It has great utility and potential for utmost convenience (save and accept the personal responsibility associated with it). Same cannot be said for gold / silver. If it was, it would still be used today as money. Truth is, gold and silver are used as a store of wealth. Not generally for exchange.

It's INSANE isn't it?

It's like people have forgotten what money is, and why "nothing" always finds its true value.

I'll bet a Bit Coin advocate could make a great case for The Federal Reserve. They'd tell people about how the President will appoint the chairman and there will be strict accountability to a mandate, but in the end, it's a scam born from pretending nothing is something.

Value

I would suggest that anything that is useful has value. The degree to which it serves us, and the degree to which it is scarce establishes the value. You seem to imply only that which can be touched has value.
Money can be a medium of exchanging wealth (not having intrinsic wealth itself), or it can itself have wealth. In which case it is really more of a commodity, than it is money.
A piece of paper (IOU / BoE / Promise to pay) has agreed value, but not intrinsic value. But to suggest an IOU / BoE / Promise to pay has no value suggests agreements have no value... Just saying...

Good luck;)

If the government in this country gets too naughty companies will just move to other countries.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

It was expected....

Look for slight pullback, before pushing on.

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Protect your assets and profit from the greatest wealth transfer in history.

And that seems to be exactly

And that seems to be exactly what is happening. I'm confident it's temporary.

________________________________________

Those who expect to reap the blessings of freedom, must, like men, undergo the fatigue of supporting it. ~Thomas Paine

The only time this applies

is when you operate in cash. For example if you just start converting everything you do into some other form of credits/currency and never convert back to cash (FED NOTES) it would never effect you.

http://www.bart-mart.com/how.mp3 <- this is how we do it.

Basis

Wonder what the basis for determining the value of $10,000 will be... The going rate? I suppose?

I say bring it on...

They can't enforce that like they can't enforce anti-piracy laws.
The only problem is that is gonna backfire. It will destroy trustful business and generate a secondary market for bitcoins.

Fear

Undoubtedly "they" will successfully prosecute a few who are either "plants", or who don't know how to keep things private, and then "they" will report it all over the news to instill fear. Undoubtedly they will also have news stories (probably manufactured) of people who's "wallet" got hacked into and emptied, without recourse or remedy. In other words, only conventional banking systems are "safe".
I believe the only weapon they have against Bitcoin is fear. I believe "they" are in deed in fear of Bitcoin. Just as Bill Gates thought 512KB was enough ram, and thus lacked the foresight of the possibilities of computing, so do I think "they" lacked the foresight of what the internet would facilitate: bitcoin being just one example.

To them I say, good luck with that

The great thing about bitcoin is that these kinds of things are fundamentally impossible.

old news

As much as the govt would cream their panties to control bitcoin, it's virtually impossible(pun intended)... Even the all powerfull gubberment cannot violate the laws of mathematics...

Good luck with those regulations, and keep posting this shit, my bitcoins are going through the roof...

Those Evil Bastards!

This is why we can't have nice things.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

And he's the beginning of the

And he's the beginning of the end if you ask me. Just the first step the government will do to crack down on bitcoin.

Commerce with all nations, alliance with none, should be our motto. - T. Jefferson rЭVO˩ution

"Everyone wants to live at the expense of the state. They forget that the state wants to live at the expense of everyone.” - BASTIAT

Interesting vid,

but no currency has ever operated like a crypto-currency does. We are not talking about a gold backed dollar or even silver coins here. This guy is a bit of a small-thinking defeatist. All I hear is "man will never fly, because he is heavier than air."

They're just trying to create fear and panic selling of bitcoins

so they can buy them up cheap for themselves.

Shame on them.
ps BITCOIN IS A SCAM A HOAX A FIDDLEFADDLE OF EPIC PROPORTIONS SELL NOW!!!!!!!!!!!!!!!!!!!!! WhaaaaaAAAAAA!!!!!!!

Pandacentricism will be our downfall.

This is what caused me to go under the radar

Around 16 or 17 years ago.

A few years earlier I had introduced the world's first gold-backed e-currency, then eGold came along and did a better job with implementation of the idea, then eGold got beaten to a regulatory pulp, then I realized that my overall business model (of which the gold-backed e-currency is only a small aspect) was too far ahead of the curve, then I received a threat against my life.

Then I went under the radar with my business development. Time has passed, obviously, and I'm not as young now. Obviously. Friends have died, loves have gone unrequited, and I give less of a sh*t now about my own fleeting existence than I did back then.

So I'm taking my business model back up into the air but away from all the "cloud" BS. Radar blips a-plenty? You bet. Obnoxious anyway? You bet.

i only buy silver or gold.

the problem with bitcoin is that i cannot physically hold it. that a big turn off.

Garan's picture

Actually you can hold it and people can beat it out of your hand

The spending of a bitcoin requires a (hopefully) private key.

That key can be carried around on some kind of media, even printed on a piece of paper.

That key can be exchanged for goods directly, if someone is willing to accept it.

Otherwise, that key can be used like the electronic password to your bank account to perform a transaction.

From what I understand, most dollars aren't physical dollars at all, just numbers on some machine. So, we are already using virtual currency.

The common denominator is faith and trust.
Faith that the currency has value by those involved in the transaction, and trust in whatever system is used to store and direct the currency.

So far, that's what I've been able to gather from various discussions of currency in general and discussions on bitcoins.

Exactly!

It is every bit as real as a dollar, but with the advantage that its issuance is limited and can never be controlled by any one entity.

If YOU can physically HOLD

If YOU can physically HOLD it, that means SOMEONE can TAKE It from you...

You could beat me to death and you'd still never find my coins... The non-physical part is what most people like about it

Garan's picture

I wouldn't suggest getting beat to death over money.

..and you never know, maybe being brought to near death
might change your mind about handing over a private key or password.

I haven't seen anyone discuss what happens if you forget your bitcoin key. I'd image that money would be as certainly dead an unusable as the certainty of privacy/encryption scheme.

So, maybe you are on to something. If all bitcoin holders and their records of bitcoin keys are destroyed, then all coins are frozen or dead.

I think it would be better to continue to live, than to be a blip in the historical saga of money.

Bitcoin is fiat

How is this different for the other "made up" money??? Give me a break. Yet another big Corporate SCAM. I pass on "Digital money", thanks.

There is absolutely NOTHING corporate

about Bitcoin. Bitcoin is no more a company than the internet itself is. Please look into it before passing judgement. It is a formidable and purely free market idea.

Bitcoin is not fiat. Fiat

Bitcoin is not fiat. Fiat means by government decree. Bitcoin is a free market currency. And you already use digital currency by fiat. Yeah so stick with FRN's and continue to get robbed by central planners and controllers... Yep a free market digital currency that is not taxable traceable artificially inflatable or vulnerable to theft by central controllers could not possibly be better then the current non-intrinsic value theft force coercion based monetary system that is about to collapse that you chose instead... Sigh

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