Cash is anonymous, too, unless a CTR or Form 8300 is filed.

I think that major concern right now is money laundering potential.

Interesting article on doing business with Bitcoins.

Doing business with Bitcoins

Here's a good article on Bitcoins from the Chicago Fed

Bitcoins

Wish I could go to this.... might have to see if I can find the webcast.

http://www.banking.senate.gov/public/ind...1f-c23be8ff4cad

Here is an article on Bitcoins and bank accounts.

Bitcoins and Bank Accounts

Bitcoin Tops $1,000 as Virtual Money Gains Popularity

Is Bitcoin the currency of the future?

Currency of the Future?

Bitcoin, the kid that huffs that he doesn't want to play on your team or by your rules but still wants to use your field and ball.

Reading through the bitcoin magazine, it seems to me to be a huge advertisement for money-laundering and terrorist financing. Why would any FI be willing to bank a bitcoin broker, or even a user? THe regulatory downside is just too great. I don't kiss cobras or jump into bonfires either.

Is Bitcoin a Ponzi scheme? Here is an interesting article.

Bitcoin Ponzi Scheme

http://www.pcworld.com/article/2070740/c...egulations.html

Some new regulations from China

I just found a consumer account with an ACH debit originated by Coinbase.com and since I have never heard of this name I Googled it to find that they are an "international digital wallet dealing in Bitcoins". So I suppose that our customer has invested in Bitcoins. Aside from the fact that I would never invest in something that I don't understand I see no reason to risk-rate him any higher than what our risk-rating system calculated and since he is a consumer who purchased them rather than a business involved in Bitcoin exchanges I won't do anything further. Any other thoughts or opinions?

Here's a good summary of the various types of cryptocurrency:

http://www.acams.org/acams/resources/acamsconnection/acamsconnection/131211/howto/

In the Murky World of Bitcoin, Fraud Is Quicker Than the Law

http://www.bloomberg.com/news/2014-01-27...-s-charges.html

Charlie Shrem of BitInstant is charged.

Here is the complaint.

Bitcoin Complaint

We have a few customers who have had preliminary ACH transactions with "Coinbase.com" and a Google search has shown them to be a Bitcoin marketplace. The first customers were consumers so I assume they might be planning to purchase Bitcoins and the last one that I found is a business who then advised us that they planning to accept payments in Bitcoins. This is going to be fun.

I have a customer who used "CoinTerra". What are we supposed to do with customers who purchase Bitcoins? Has anyone come up with any procedures or action plans?

What's the volume and amount associated with these customers?

Mine sent $40,000. Of course no one knew the wire was for bitcoins so no one asked him questions regarding ....

I don't have anything concrete, but given the amount I would be inquiring with the customer about the planned usage of the Bitcoins and if they plan to purchase more in the future.

At the end of the day, you need to have a procedure in place to mitigate the risks associated with Bitcoin. I would be particularly concerned with monitoring activity to ensure your customer isn't acting as an unlicensed MSB.

Mary Beth is going to discuss the practical implications of virtual currencies at Top Gun. Frankly, I'm anxious for someone to connect the dots...I certainly understand FinCEN's and law enforcement concerns, but the real "trickle down" effects on "real" banks are not clear to me.

I'm going to go over the FinCen Guidance and some monitoring ideas during my Emerging Payments Monitoring session at Top Gun as well...there should be plenty of coin to go around.