A group of computer science students and professors from Trinity College Dublin are working on some interesting Bitcoin projects. In an attempt to tackle and reduce fraud, they are combing the blockch
Thursday, February 5, 2015
Irish University to Explore ‘Bitcoin Credit-Checks’
A group of computer science students and professors from Trinity College Dublin are working on some interesting Bitcoin projects. In an attempt to tackle and reduce fraud, they are combing the blockch
Bitcoin-Friendly Cannabis Vending Machines Makes ‘Historic’ Debut in Seattle
Both bitcoin and cannabis history was made in Seattle as the first vending machines to dispense marijuana debuted Tuesday.
Bitcoin Daily Digest: Ulbricht found guilty, BitLicense Returns and more
Ross Ulbricht found guilty at Silk Road trial, New York's BitLicense bill re-emerges after public consultation, Italy clarifies Bitcoin’s legal status, BitPay claims over 100,000 merchants now accept
New Hampshire Considering Bitcoin for Tax Payments
A new bill proposed in New Hampshire could obligate the state treasury to draw up plans to accept Bitcoin as payment for taxes.
Italy’s Central Bank Addresses ECB, Clarifies Bitcoin’s Legal Status
Italy's Financial Intelligence Unit (FIU), an organ of the Central Bank in charge of combating money laundering and terrorist financing, issued a statement warning digital currency businesses to stay
Ross Ulbricht Found Guilty on All Charges
Ross Ulbricht is the man behind the alias “Dread Pirate Roberts”, known to be the creator and owner of the digital black market Silk Road. On February 4, 2015, he was found guilty on all seven federal
BitLicense Clears First Public Consultation with ‘major changes’
After an initial 90-day public comment period, New York State Department of Financial Services (NYDFS) has released the latest edition of its BitLicense proposals.
Roger Ver: ‘2015 is the Year Bitcoin Will Integrate with the Traditional Finance System’
In the run up to his appearance at the Virtual Crypto Summit, CoinTelegraph spoke to Roger Ver who said 2015 will be the year Bitcoin integrates with the traditional finance system, the Winklevoss Bit
Wednesday, February 4, 2015
Central Bank of Italy Declares Virtual Currency Exchanges Are Not Subject to AML Requirements
The Central Bank of Italy (Banca d’Italia) is that country’s first governmental authority to issue a statement on virtual currencies. It recently published three directives:
- Warnings on use of virtual currencies (30 Jan 2015);
- Notice on virtual currencies (30 Jan 2015);
- Notice of Central Authority for Reporting on virtual currencies (2nd Feb 2015).
The “Notice About the use of virtual currencies” (published on the Supervisory Bulletin No. 1, January 2015) is a summary of guidance previously issued by the European Central Bank (ECB), the European Banking Authority (EBA), and the Financial Action Task Force. The Central Bank of Italy is the first to release any statements based on the ECB’s comments. The Notice clarifies the legal status of virtual currencies in Italy with this important statement:
“In Italy the purchase, use and acceptance of virtual currency must be considered lawful activity: the parties are free to transact in amounts not expressed in legal tender.”
The January 30 Notice on virtual currencies also contains an analysis of the guidance published by the EBA, and agrees with the EBA’s recommendation that financial institutions should avoid buying or investing in virtual currencies until a formal legal framework has been established. This means the Central Bank will not ban regulated institutions from dealing in Bitcoin and other virtual currencies, but advises them to wait until formal regulations are announced.
The Notice allows financial institutions regulated by the Bank of Italy to do business with any virtual currency companies, provided that they respect existing AML/KYC requirements for account holders and warn them about the risks involved.
The Notice of Central Authority for Reporting on virtual currencies of Financial Intelligence Unit (FIU) warns that using virtual currencies may enable money laundering and terrorist financing, as previously discussed by the ECB and other European authorities. The FIU states that businesses dealing in virtual currencies, including holding them and exchanging them for fiat currencies, are not required to comply with any AML/KYC regulations.
A reading of the documents released by both the Central Bank of Italy and the FIU indicates that a business that transacts in virtual currencies is not subject to any regulation at this time. However, the owners of such businesses would be subject to existing AML/KYC requirements when setting up a bank account or dealing with a regulated financial institution. In that case, virtual currency activities are not subject to any unique regulations; instead the activities are regulated where they intersect with the existing AML requirements of the Italian financial system.
Italy is the first country to declare that virtual currency exchanges are not subject to any AML requirements. This is in contrast to the United States, where exchanges are required to register with the Financial Crimes Enforcement Network (FinCEN) as Money Services Businesses.
The FIU concludes with a recommendation that regulated financial institutions evaluate their own clients to screen for suspicious transactions. It also recommends that financial institutions educate their staff about virtual currencies and how to identify suspicious transactions, with a particular focus on gaming operators.
Bitcoin For Education: Indian Mountain School Accepts Bitcoin Donations
Education and bitcoin seem to be on a roll. First, there was Canada's McGill University students receiving free bitcoins and bitcoin education. Next, there was a Princeton professor giving free Bitcoi
Roger Ver: Gaming Industry ‘Should Be Scrambling to Implement Bitcoin’
Jon Matonis and Roger Ver on the solutions Bitcoin offers to the gaming industry, Bitreserve’s Halsey Minor announces new customer, and ‘decentralized gaming’ with Credits.
Bitcoin Daily Digest: Darkleaks, Aussie Travel Agency Embraces BTC and More
Darkleaks' black market for data, Inside Bitcoins coming to Berlin, 600 merchants in Austria started selling Bitcoin over night, BitPay partnering with Adyen, and much more news that happened on Febru
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