BitcoinBlog

[Guest Blog] The FinCEN Bitcoin Debacle

Following quickly on the heels of the USA New York Department of Financial Services (NYDFS) attempt to crush New York state based alternative currencies with an onerous Bitlicense, comes the all encompassing tax grab by the USA Financial Crimes Enforcement Network (FinCEN).

War budgets are expensive toys. With the USA oil and other undeclared wars – such as counter-intuitive drone strike programs – so called security doesn’t come cheaply. Not a problem. This past week FinCEN released two new guidelines in response to user submitted questions.

The questions FinCEN set out to answer included whether or not bitcoin companies – at least in the two cases they responded to – should be exempt or included under FinCEN jurisdiction. Such distinction is not a matter lightly considered.

Businesses subject to the reporting requirements of FinCEN and its related USA national agencies, legal acts & bodies face a steep compliance bill just to maintain the status quo. We’re talking about cash here folks. Profit reducing FinCEN reporting costs are carried by each bitcoin company regardless of whether or not the bitcoin business actually makes a thin dime – or $BTC – in profit.

So here we have an opportunity for another engorged American regulatory body to cut a slice of pie out of hard earned American business innovation. How do you think FinCEN responded?

Dear Readers wanting to read every ounce of cherished FinCEN regulatory “guideline” tidbits can read them here:

Case 1
http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R011.pdf
Case 2
http://www.fincen.gov/news_room/rp/rulings/pdf/FIN-2014-R012.pdf

A shorter version for you our dear reader

Ok, my Dear Reader doesn’t want to read the entire regulatory mumbo jumbo. Entirely understandable.

Here’s the short synopsis neatly rolled into an easy to understand cartoon:

kittysense_1

Asleep at the wheel?
Who’s driving this monolithic, unaccountable and snail speed train wreck called FinCEN? The 2 case questions were submitted last December 2013 and January 2014 respectively. And the FinCEN answers come over 8 plus months later? Wake up America, there’s bitcoin business going on.

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KittySense is just one kitty’s irreverent and ridiculous opinion. What’s yours? Share above or comment below.

@KittyBitcoin supplies mobile friendly blockchain intelligence on http://kittybitcoin.com. Their favorite color is pink and the bigger the wool ball the better.
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