FinCEN Issues Two Administrative Rulings Regarding Virtual Currency

FinCen issued two administrative rulings regarding proposed business models of two companies engaged in services relating to virtual currency. One company sought a ruling regarding its virtual currency payment system and the other sought guidance about a proposed virtual currency trading platform.

In the two rulings, FinCEN held that the proposed business activities of the companies seeking guidance required those companies to comply with all FinCEN regulations applicable to money transmitting businesses, even though both companies claimed that their particular platforms and systems did not fall within the definition of regulated activity.