FinCEN Provides Guidance On Convertible Virtual Currencies, Issues Advisory On Illicit Activity

The Financial Crimes Enforcement Network ("FinCEN") target=_blankprovided guidance on the application of Bank Secrecy Act money transmission regulations to business models involving convertible virtual currencies ("CVCs"). FinCEN also issued an advisory to assist financial institutions in identifying and reporting suspicious activity relating to the use of CVC technologies for criminal purposes.

FinCEN said its guidance on CVCs does not introduce any new requirements. The guidance was created to consolidate rules, administrative rulings and guidance issued since 2011 that apply to business models involving CVCs, including peer-to-peer ("P2P") exchangers and cryptocurrency wallet providers.