10 Essential Terms for Bitcoin Regulation

10 terms bitcoin cover photo Compliance with existing law is necessary for the Bitcoin ecosystem to grow. As the industry continues to expand, and the technology gains wider acceptance, an increasing number of governments are reacting in an effort to safely regulate usage of virtual currencies.


In March 2013, the U.S. Financial Crimes Enforcement Network (FinCEN) classified Bitcoin and Virtual Currency exchanges as Money Services Businesses (MSB’s) in the U.S., which are national businesses that transmit or convert money. As a result of this classification, any Bitcoin or Virtual Currency exchange operating in the U.S., or with U.S. customers, must comply with the same regulations that apply to traditional MSB’s, regardless of whether these exchanges deal with at currency. Businesses that do not comply with regulation can be shut down, or face felony charges for money laundering. We have already seen these exchanges in the U.S. closed down and individuals arrested for not complying with the concepts discussed in this report.


From Mitek’s partner, IdentityMind Global, this list of terms is intended as an introduction to the essential terms and concepts Bitcoin companies must understand to comply with regulation in the U.S. and abroad.




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