The raid on Mt Gox assets was the first serious shut down of a BitCoin exchange by the US Federal Government.
In March, Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury issued a new definition that brings BitCoin fully into the regulators’ grasp;
“a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency.”
The new definition now makes dealers in BitCoin subject to “18 USC § 1960 – Prohibition of unlicensed money transmitting businesses.” If BitCoin sites allow US players and transmit or receive BitCoin payments, they may be breaking US law and should get legal advice.
Being based overseas is no escape, as the law applies even to foreign companies if they allow US customers access to their services.
