The United States federal agency charged with enforcing laws against money laundering (FinCEN) declares that bitcoin miners are not subjects to its regulations

On 18th March, 2013 the Financial Crimes Enforcement Network (FinCEN) issued guidelines for Bitcoin.

 

FinCEN suggested that certain parties in the Bitcoin economy could be classified as Money Services Businesses (MSBs), which would require them to register with the federal government. MSBs are required to collect customer information and report potentially suspicious transactions to combat money laundering. The guidelines implied that Bitcoin exchanges, like Mt. Gox, which allow the buying and selling of Bitcoin for fiat currency, could be considered money transmitters and thus subject to federal regulation.

 

The decentralized structure of the Bitcoin network, with no single authority issuing or approving transactions, complicates the application of traditional financial regulations. According to FinCEN, individual miners who use their mined bitcoins for personal transactions are not considered money transmitters. However, those who sell mined bitcoins for real currency are engaged in money transmission and are subject to regulation.

 

The guidelines distinguish between those who engage in money transmission “as a business” and those who do not, with the former being subject to MSB regulations. An exchanger is defined as someone engaged in the business of exchanging virtual currency for real currency, which could include many participants in the Bitcoin economy.