#bitcoinlawfirm

[virtualcurrencyspace]

Fourth BitLicense Approved. Contact Virtual Currency Space.

On June 13, the NYDFS announced that it approved XRP II, LLC’s application for a virtual currency license. Before approving the company’s August 2015 application, NYDFS conducted a “rigorous review” of the company’s anti-money laundering, capitalization, consumer protection, and cybersecurity standards. To date, NYDFS has approved four, including this one, of the 26 BitLicense applications it has received. NYDFS further noted that it recently denied two applications for a virtual currency license; the companies in receipt of the denial letters were ordered to stop any New York operations. https://www.lexology.com/library/detail.aspx?g=ee90d52c-657d-41d4-a929-ce1c949869e3

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SARS reports for Bitcoin

Since Bitcoin is pseudonymous, one potential market function is to trace public keys connected to suspicious activity. If exchanges could identify certain accounts linked to suspicious activity, then those exchanges could file SARs to FinCEN based on the completely public transactions.[162] FinCEN should promote this type of tracing activity because it has the capability to alert law enforcement to potentially illegal financial transactions. By discovering who engages in suspicious activity and where such activity is located, FinCEN can target certain areas for investigations and potentially remedy troubled areas.

http://www.nclawreview.org/2015/01/virtually-possible-how-to-strengthen-bitcoin-regulation-within-the-current-regulatory-framework-2/

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Strengthening Bitcoin Regulations

Going forward, regulators have the opportunity to enable the use of this transformational technological innovation while maintaining certain rules that protect the U.S. financial system. Regulators can work within the existing regulatory framework without any statutory changes to create a safer and more transparent Bitcoin marketplace in three ways. First, regulators should publicly promote enhanced public-private cooperation. Second, regulators should pursue tougher enforcement on non-compliant Bitcoin exchanges.[6] Third, regulators should publicly advocate for more active filings of Suspicious Activity Reports (“SARs”)[7] to foster certainty and trust in the marketplace.

http://www.nclawreview.org/2015/01/virtually-possible-how-to-strengthen-bitcoin-regulation-within-the-current-regulatory-framework-2/

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Draft law for Bitcoin in Russia

Although bitcoin's future remains uncertain in Russia, it is perhaps safe to say that crypto enthusiasts can remain at ease at least for now. The draft law – which would criminalise bitcoin conversions – pursued by the Ministry of Finance is being reviewed by the Cabinet, a process which is expected to take a few months, and will then have to be submitted to the country's Parliament for final approval. http://www.coindesk.com/russia-ban-bitcoin-not-blockchain/

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BitLicense Steps & Procedures

http://bitcoin-reg.com/docs/DPW_DCG%20Presentation_Final.7.16.2015.pdf

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Draft Law for Virtual Currencies

“Uniform Law Commission. The Uniform Law Commission (“ULC”) is set to discuss a draft version of a model law that will guide states in creating regulation for virtual currencies. The conference will take place in Washington, D.C. from October 9th to the 11th and ULC’s Study Committee on Alternative and Mobile Payment Systems will discuss the specifics of the bill’s current provisions. The goal is to create a law that would do for digital currencies what the Uniform Money Services Act did for money transmission laws. One of the most notable proposals of the draft version is a section on reciprocal licensing, which would allow digital currency businesses governed under the law to engage in services without going through the full licensing process in other states. The process would entail (i) paying an unspecified fee, (ii) completing a reciprocal license application form, and (iii) submitting a certification of license history by the applicant. As drafted, state commissioners who grant reciprocity and issue a license would need to do so within 30 days upon receipt of the 3 items enumerated above.”

http://www.virtualcurrencyreport.com/2015/10/bitcoin-week-in-review-10-03-15-10-09-15/

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Shortcoming of the legal framework for Bitcoins and Mobile Payments

“The uncertain scope of the legal framework may lead to legal uncertainty for the user, which in turn could prevent this user from using said service and thus leading to a loss of chance of economic growth.46 It should therefore be questioned whether the current legal framework suffices in fostering for user trust as an important factor in the growth of this sector. Under the current legal framework, the distinction between regulated e-money and unregulated virtual alternative currencies is mainly set by the definition of e-money under the E-money Directive and the two main exceptions to the scope of application of both directives. The scope of these elements is not sufficiently defined and leaves room for discussion and uncertainty. Therefore, these elements cannot suffice in maintaining the threshold between more or less user protection and thus cannot provide the user with legal certainty regarding the applicability of the legal framework set by both directives. Therefore, a new demarcating element should be established focusing on including those services that pose a greater risk to the user, regardless of their overall scope and impact.”

http://ijlit.oxfordjournals.org/content/22/3/295.full

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Bitcoin Adoption and Regulation

“Both established and new businesses considering Bitcoin adoption need to be aware of the latest regulatory requirements to stay on the right side of the law. Depending on the business, this could mean adhering to the BSA requirements of record keeping and reporting, and staying in line with anti-money laundering provisions. In addition, all businesses transacting in Bitcoin should be aware of the applicable tax requirements for virtual currencies. Ultimately, because virtual currency regulation is a relatively new development and the government is still trying to fully understand the technology, businesses should keep a pulse on regulatory agencies for any new laws that may apply to them.

http://jolt.law.harvard.edu/articles/pdf/v27/27HarvJLTech587.pdf