Bitcoin Mining is not a Money Transmission, According to FincEN

CoinReport has posted the details of a recent FinCEN release.

FinCEN Declares Bitcoin Escrow and Cloud Mining Not Money Transmitters

Posted April 30, 2014, by Ali Najjar

The US Department of the Treasury’s Financial Crimes Enforcement Network has issued a release, ruling that bitcoin cloud mining services and Escrow services are not considered money transmitters.

Money Transmitters

The statement comes as a response after businesses requested a clearer understanding of FinCEN policies.

The financial institution has previously provided ways for digital currency miners and investors to be regulated under money transmission laws. Such releases offer the agencies views on new and important matters.

Cloud mining consists of a customer leasing mining hardware capabilities through a cloud based service. Customers pay providers for the service through set contracts, which are usually monthly or yearly.


See the rest of the article here.