FinCEN Confirms Larger Interest In Bitcoin Companies After ...
FinCEN Confirms Larger Interest In Bitcoin Companies After ...
REMARKS OF JENNIFER SHASKY CALVERY, DIRECTOR, FINANCIAL ...
r/Bitcoin - Prepared remarks of Jennifer Shasky Calvary ...
FinCEN Director Jennifer Shasky Calvery: Full CoinDesk ...
'ISIL May be Using Bitcoin,' Says FinCEN Director Jennifer ...
FOR THOSE NOT IN US. CSPAN-3 hearing BITCOIN
Bernanke never said that "Bitcoin may hold long-term promise", and other bitcoin quotes corrected with sources
During the course of my research, I made a collection of Bitcoin quotes that I could use in different publications. Many "famous people bitcoin quotes" are false, misquoted and without sources. Using those quotes is bad for everyone. The first, and most horribly fasle quote, is Bernanke's famous quote: "Bitoin may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.” 1) The quote is actually from Alan Blinder 2) The quote is from 1995 3) The quote has nothing to do with Bitcoin This is the full quote: Dear Senators: Thank you for your recent inquiry regarding virtual currencies. As you noted, virtual currencies have been receiving increased attention from U.S. authorities over the past several months. Historically, virtual currencies have been viewed as a form of “electronic money” or area of payment system technology that has been evolving over the past 20 years. Over time, these types of innovations have received attention from Congress as well as U.S. regulators. For example, in 1995, the U.S. House of Representatives held hearings on “the future of money” at which early versions of virtual currencies and other innovations were discussed. Vice Chairman Alan Blinder’s testimony at that time made the key point that while these types of innovations may pose risks related to law enforcement and supervisory matters, there are also areas in which they may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system. Read more: http://www.businessinsider.com/ben-bernanke-on-bitcoin-2013-11#ixzz2qgGXCYKk I know some of you already know that this quote is badly cited, but believe me it is being used by every journalist and "expert" out there (google Bernanke bitcoin quote, you'll se that I'm right). EDIT: Bernanke is not paraphrasing Blinder in order to support a positive / negative opinion of Bitcoin. He quotes Blinder in the introduction of his letter as a way to show that monetary innovations was already a topic of interest back in 1995 There was another post with Bitcoin quotes from famous people here: http://www.reddit.com/Bitcoin/comments/1ohza2/quotes_about_bitcoin_from_famous_people/ Many of these quotes were misquoted, false or without references. I took the liberty to create a legit quotes list with sources: "I think Bitcoin is a techno tour de force." - Bill Gates, Founder of Microsoft Fox News, May 6, 2013 Original source: http://video.foxbusiness.com/v/2359385547001/ “I gave a talk back in November of ‘99 on […] how encrypted money was going to change the world. I do think bitcoin is the first one of these that has the potential to do something like that. - Peter Thiel, Co-Founder of Paypal. Secondary source: http://www.appstorechronicle.com/2013/11/exclusive-peter-thiel-bitcoin.html#ixzz2pdIR3w8w “It’s fascinating to watch what’s happened with Bitcoin. Congress has just been spending a week looking at it, they might bring some regulations, but I just hope that it will not stifle innovations of new tech novalties like Bitcoin” Sir Richard Branson, Novembre 22th 2013 Original source: http://video.cnbc.com/gallery/?play=1&video=3000220731 “I think the fact that within the Bitcoin universe an algorithm replaces the functions of [the government] … is actually pretty cool” Al Gore, former US vice president and winner of the Nobel Peace prize Secondary source: http://www.pymnts.com/briefing-room/commerce-3-0/the-innovation-project-2013/al-gore-speaks-on-mobile-money-and-the-global-mind/ “Virtual currency systems, so long as they comply with applicable anti money-laundering and money transmission laws and regulations are not inherently illegal and they can be appealing to consumers because they can provide cheap, efficient and convenient means to transfer currency.” Mythili Raman of the Department of Justice Criminal Division Original source: http://online.wsj.com/article/65405E2A-CD8B-4B70-B8DD-9E7A19D05A61.html#!65405E2A-CD8B-4B70-B8DD-9E7A19D05A61 “Bitcoin is the most important invention in the history of the world since the internet. Roger Ver, CEO of MemoryDealers.com Original source: http://rogerver.com “Three eras of currency: Commodity based, e.g. Gold., Politically based, e.g. Dollar, Math based, e.g. Bitcoin” Chris Dixon, Personal investor in technology startups Original source: http://nonchalantrepreneur.com/post/46485623457/three-eras-of-currency "Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.” - Nassim Nicholas Taleb, Ph.D statistician, author, and advisor to the IMF Original source: http://nassimtaleb.org/tag/bitcoin/ "Bitcoin is going to be a big player in the future of the exchange of goods and services" Jennifer Shasky Calvery, the director of the Treasury Department’s Financial Crimes Enforcement Network Original source: http://www.c-spanvideo.org/program/DigitalCu “The decision to bring virtual currency within the scope of our regulatory framework should be viewed by those who respect and obey the basic rule of law as a positive development for this sector. It recognizes the innovation virtual currencies provide, and the benefits they might offer society,” Jennifer Shasky Calvery, the director of the Treasury Department’s Financial Crimes Enforcement Network. Original source: http://www.c-spanvideo.org/program/DigitalCu "A number of smart people both inside and outside of government view bitcoin as a major emerging issue that is deserving of our attention" - Senator Tom Carper (D) Original source: http://www.youtube.com/watch?v=x8Y71IXEK8w “It [Bitcoin] is a huge, huge, huge deal […] it is gold 2.0” - Chamath Palihapitiya, venture capitalist and former Facebook executive Original source: https://www.youtube.com/watch?v=59uTUpO8Dzw&feature=youtu.be&t=19m14s "Bitcoin may be the TCP/IP of money." - Paul Buchheit, Creator of Gmail https://twitter.com/paultoo/status/328969714283995136 “We have elected to put our money and faith in a mathematical framework that is free of politics and human error.” - Tyler Winklevoss, Winklevoss Bitcoin Trust Original source: http://abcnews.go.com/Technology/winklevosses-turn-bitcoin-turmoil/story?id=18941399
FinCEN logic effectively shuts down all Internet commerce. Heck, Doesn't it shut everyone down!?!
But, clearly, that’s not how the federal government sees things. If he doesn’t verify or have a way of knowing whether the owner of the bitcoins is the same person he’s sending the coins to, that’s a problem, says Faisal Islam, the director of compliance advisory services with Centra Payments Solutions, a company that advises corporations on financial compliance. http://www.wired.com/wiredenterprise/2013/12/casascius/
Combine this with:
Any person, whether or not licensed or required to be licensed, who engages as a business in accepting currency, or funds denominated in currency, and transmits the currency or funds, or the value of the currency or funds, by any means through a financial agency or institution, a Federal Reserve Bank or other facility of one or more Federal Reserve Banks, the Board of Governors of the Federal Reserve System, or both, or an electronic funds transfer network 31 CFR § 1010.100(ff)(5)(i)(A) http://www.law.cornell.edu/cftext/31/1010.100
Now the reasoning here is that someone buying a Casascius bitcoin and having it shipped to some address may put Mike Caldwell in the position of "Transmitting value" from one person to another. After all, how can you prove the person paying is exactly the same as the person that ends up receiving the coin through the mail? Jennifer Shasky Calvery, Director of FinCEN said in her testimony several times that FinCEN doesn't need to know if Bitcoin is a currency or a commodity or something else. That the fact that it has value is enough for them to regulate Bitcoin. So if we are going to use their logic consistently, eBay without question must register as a Money Transmitting service. They clearly and unambiguously act as a facilitating third party in the exchange "value" between individuals and/or entities. Do they comply with all Know Your Customer (KYC) processes? Does Amazon? Does NewEgg? What about Walmart? When someone pays for a product at even the brick and mortar store, how can Walmart be sure that the person carrying out the product was exactly the same person that paid? How can anyone exchange anything of "value" without complying fully by registering as Money Transmitters and collecting and filing full KYC reports with the government? In this Christmas season, Financial crime and the transmission of value between parties without full KYC reports is literally out of control... Surely the government can jail everyone, and stop all Internet commerce, and all catalog sales, and put a stop to all of this facilitation of value between parties!
Some thoughts on Mercedes Kelly Tunstall's Testimony
We need, as a community, to take her testimony very seriously. There is a very specific vision being outlined here for virtual currencies that undermines just about everything the movement here has stood for, as well as the significant monetary investments made in bitcoin hitherto. The fundamental insight guiding her testimony is the following: The technological innovation behind the solution to the double spend problem is independent of the other features of bitcoin and other virtual currencies that make them attractive to libertarian sympathisers. Since it's the solution to the double spend problem that allows for direct exchange and lower transaction costs - one can take that solution and obtain its benefits, without any of the libertarian cruft, by implementing a bitcoin 2.0 (Tunstall refers to them as next generation virtual currencies). This 2.0 version will remove whatever aspects of the first version that are considered to undermine the existing regime (it's deflationary nature, semi-anonymity etc). The encouraging other testimonies (particularly from Ms. Jennifer Shasky Calvery) notwithstanding - I fear there is a very strong chance that this will be the ultimate vision pursued by the powers that be. And if we don't take this possibility very seriously - then we will get completely blindsided. What are the chances of such an approach being taken - and succeeding? Starting with the first. Currently, I see the chances as high (but I would like to hear arguments to the contrary). Why? Tax. If theses hearing really clarified anything, then it's the fact that it's not so much the silk road's of the world that bother authorities, law enforcement seems confident at being able to keep a lid on that - it's the issue about taxation. How are governments going to collect tax on bitcoin transactions? And I didn't see any concrete answers in any of the testimonies on this issue (correct me if I'm wrong). Governments are self-interested entities and they will move to protect their interests - i.e. their revenue. If, to solve this issue, they move to introduce a bitcoin 2.0 that more easily protects their revenue - how likely would it succeed? I also think it highly likely - at least, if they moved quickly. Going forward, I'm not so sure as the growing network effect of bitcoin adoption make it more difficult. But consider - if all the major banks and government agencies throw their weight behind a competing virtual currency - throw massive marketing and development budgets, while at the same time tightening the screws on bitcoin exchanges (with the banks and government agencies already seemingly doing this to some extent), I don't see how bitcoin could survive. The average joe will pick the currency that is the easiest to use. What can we do to avoid this? If we can demonstrate that taxation won't be significantly affected by bitcoin's existing structure then a large amount of wind will be taken out of the sails of those pushing for a 2.0 bitcoin. (I personally don't think that relying on the network effects of bitcoin adoption will be enough. The exchanges are too easy to squeeze.) We could get away with slipping into the mainstream what is an otherwise substantially libertarian protocol if we can just satisfy the government in this one respect. But is this feasible? Can we make a convincing case that bitcoin won't allow anymore tax evasion than current systems? If not, what aspects of bitcoin could be retained? Is it the case that we would have to give up the degree of anonymity currently allowed by bitcoin? Is it worth it to give up anonymity if it means we get to slip in a deflationary currency into the mainstream? I don't think I've said anything new here - but I really feel these questions have greater urgency now. What do we care about essentially? 1) Making money only? Then bitcoin 2.0 all the way. 2) Being able to avoid the strictures and regulations of governments (corrupt and repressive or otherwise?) - then bitcoin must preserve anonymity. 3) Usurping the federal reserve system that taxes us through inflation? Then we must protect the deflationary aspect of bitcoin. We might have to admit to ourselves that we might not be able to achieve all three. But if we do admit this and realise that the powers that being are really worried about 2) right now - then we might get away with sneaking a victory for 3). Note - you can find the written testimonies here: http://www.banking.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=955322cc-d648-4a00-a41f-c23be8ff4cad
Yesterday, the Senate Committee on Homeland Security and Governmental Affairs held a hearing on the potential risks, threats and promises of virtual currencies. Later today, a Senate Banking Committee will hold a similar hearing. The focus is on Bitcoin, a virtual currency that operates completely outside of U.S. financial regulations and protections. Critics argue the current lack of oversight offers anonymity to those hoping to skirt U.S. laws, but others say it’s a frontier in electronic commerce with important consumer benefits. Diane and her guests talk about Bitcoin and the future of virtual currencies. Guests Jennifer Shasky Calvery director, Financial Crimes Enforcement Network, U.S. Treasury Department James Freis attorney, Cleary, Gottleib, Steen and Hamilton specializing in financial regulatory and enforcement issues. Jamila Trindle senior reporter, Foreign Policy Magazine Jon Matonis executive director, Bitcoin Foundation
Francois Velde senior economist, Federal Reserve Bank of Chicago
I note that than one of the guests represents the Federal Reserve. How ironic. A secretive private entity that is above public scrutiny and feels unencumbered by legislative oversight and produces money out of thin air is complaining about another secretive entity that is outside public scrutiny producing money out of thin air. To further add to the irony, will anyone have the guts to forthrightly ask the representative from the Financial Crimes Enforcement Network how many of the "banksters" that crashed the economy have been brought up against charges and prosecuted? How about those at the credit rating agencies that gave high marks to inherently worthless financial instruments that they didn't understand - how many have been prosecuted? Let's be honest, the US Government has failed in being a proper steward of the traditional financial/monetary system. A clear case of the pot calling the kettle black. Stolen from: https://bitcointalk.org/index.php?topic=339316.0
Entidades Reguladoras Veem Valor No Bitcoin, E Investidores Se Apressam Em Concordar.
BY NATHANIEL POPPER A moeda virtual bitcoin deu um grande passo em direção a sua popularização nesta segunda-feira quando as autoridades federais sinalizaram sua disposição de aceitá-la como uma alternativa de pagamento legítimo. Um número de funcionários federais disse em uma audiência no Senado que essas redes financeiras ofereceram benefícios reais para o sistema financeiro, assim como eles reconheceram que as novas formas de dinheiro digitais haviam fornecido caminhos para a lavagem de dinheiro e atividades ilegais. "Há muitas oportunidades para as moedas digitais operarem dentro das leis e regulamentos existentes", disse Edward Lowery, um agente especial do Serviço Secreto, que é encarregado de proteger a integridade do dólar. Sinais de que o governo não iria se colocar no caminho do desenvolvimento do bitcoin, mesmo que ele venha reprimindo as redes criminosas que usam o dinheiro digital, alimentou uma forte recuperação no preço do cripto-moeda. Na segunda-feira à noite, o valor de uma unidade de bitcoin explodiu ultrapassando 700 dólares em algumas trocas. Esse excepcional montante de bitcoins - que é criado por uma rede de usuários que resolvem problemas matemáticos complexos - agora vale mais de US $ 7 bilhões. A audiência do Senado nesta segunda-feira à tarde, foi uma indicação mais clara do desejo do governo de lidar com as consequências deste crescimento, e o reconhecimento de que o bitcoin e outras redes semelhantes podem se tornar peças mais duradouras e importantes do cenário financeiro. Video: http://www.nytimes.com/video/business/100000002167289/bitcoin-has-real-world-investors.html "A decisão de trazer a moeda virtual dentro do escopo do nosso quadro regulamentar deve ser visto por aqueles que respeitam e obedecem aos fundamentos básicos da lei como um desenvolvimento positivo para o setor", disse Jennifer Shasky Calvery, o diretor do Departamento de Execução de Crimes Financeiros do Tesouro. "Ele reconhece a inovação que moedas virtuais fornecem, e os benefícios que elas podem oferecer." Ms. Shasky Calvery e os outros funcionários na audiência disseram que ainda havia questões básicas a serem respondidas sobre moedas virtuais, incluindo se elas realmente podem ser consideradas moedas ou se são mais corretamente classificados como bens ou valores mobiliários. A distinção vai determinar quais agências regularam as redes e como elas serão tratadas sob a lei fiscal. Ms. Shasky Calvery disse que a Receita Federal estava "trabalhando ativamente" em suas próprias regras para o bitcoin. A audiência seguiu outras medidas menos visíveis tomadas pelos reguladores e legisladores para trazer o dinheiro digital ao mainstream monetário. O principal regulador financeiro do Estado de Nova York, Benjamin M. Lawsky, disse na semana passada que ele iria realizar uma audiência para considerar a criação de um BitLicense para fornecer mais fiscalização para as transações. Mais cedo, a Comissão Federal Eleitoral expôs um aviso indicando que bitcoin pode ser legalmente aceitos como doações políticas. O conselheiro geral da Fundação Bitcoin, uma organização sem fins lucrativos que defende a moeda, disse em seu depoimento na segunda-feira que ele estava recebendo uma resposta muito mais amigável do governo e do setor financeiro. "Nós recentemente percebemos uma melhora acentuada no tom e ênfase tomada por ambos os funcionários do Estado e executivos de banco", disse o conselheiro-geral, Patrick Murck, disse. Bitcoin tem experimentado uma ascensão notável desde que foi criado em 2009 por um programador anônimo ou coletivo conhecido como Satoshi Nakamoto. O dinheiro, que não está vinculado a qualquer moeda nacional, tem sido popular com tecnófilos que são céticos dos bancos centrais do mundo. Apenas uma quantidade finita de bitcoin será criada - 21 milhões de unidades. Os usuários alavancaram os preços pelas casas de câmbio pela Internet, apostando que a moeda será mais amplamente utilizada no futuro. Há questões importantes sobre a sabedoria de usar o dinheiro digital como um investimento, uma vez que bitcoin não possui valor intrínseco e provou ser vulnerável a hackers. Muitos gestores de fundos têm recomendado aos investidores inexperientes para permanecerem longe. Recentemente, porém, o bitcoin tem pegando fogo em todo o mundo, com trocas na China particularmente ativas. Um número crescente de investidores americanos proeminentes também compraram participações, incluindo Michael Novogratz, diretor da gigante Fortress Investment Group¹, assim como os gêmeos Winklevoss, Cameron e Tyler. A participação cada vez mais generalizada do bitcoin deslocou a atenção para longe dos empreendimentos criminosos que usaram o dinheiro digital, mas era um foco na audiência do Senado. No mês passado, o mercado on-line Silk Road, onde o Bitcoin é a principal forma de pagamento, foi fechado e seu fundador preso depois que as autoridades o acusaram de ser usado para comprar e vender drogas, armas e pornografia. O presidente da comissão do Senado, Thomas R. Carper, democrata de Delaware, disse que poucos dias depois da prisão, um site semelhante surgiu. "Pode ser mais difícil de rastrear os criminosos que usam o Bitcoin", policiais disseram na audiência, "porque operam através das fronteiras internacionais e muitas vezes não usam instituições financeiras estabelecidas que reportem as transações”. Mas Mythili Raman, um procurador-geral adjunto do Departamento de Justiça, também disse que, porque cada transação de bitcoin era gravada em um registro público, foi possível aos investigadores rastrear a movimentação de dinheiro entre contas. "Não é, de fato, anônimo. Não está imune a investigação", disse Raman. Todos os funcionários na audiência disseram que crimes tinham sido um problema durante os primeiros dias de cartões de crédito e sistemas de pagamento online como o PayPal, e não deve ser uma razão para limitar a inovação. "É nosso dever, como aplicadores da lei de permanecermos vigilantes, reconhecendo que há muitos usuários legítimos desses serviços", disse Raman. Os defensores do bitcoin que testemunharam na audiência disseram que o bitcoin pode trazer grandes mudanças para o sistema financeiro por cortar os intermediários necessários para movimentar o dinheiro em todo o mundo. "Estou aqui para testemunhar porque eu acredito que a moeda digital global representa uma das inovações técnicas e econômicas mais importantes do nosso tempo", disse Jeremy Allaire, presidente-executivo do Círculo Internet Financial, que está tentando promover uma utilização mais difundida da moeda. Dado o apelo do bitcoin aos céticos do governo, muitos aficionados têm sido cautelosos com envolvimento de Washington. Mas os defensores na audiência disseram que a crescente cooperação com as entidades reguladoras poderiam lançar as bases para um maior crescimento. "À medida que essa tecnologia se desloca de pioneiros para a aceitação popular, é fundamental em minha opinião, que os governos federais e estaduais estabeleçam políticas em torno da moeda digital", disse Allaire. ¹http://dealbook.on.nytimes.com/public/overview?symbol=FIG&inline=nyt-org Traduzido por Sarah Alexandre Uma versão desse artigo aparece na impressão de 19/11/2013, na página B1 da edição do NewYork com o título: “Regulators See Value in Bitcoin, And Investors Hasten to Agree” Texto original em: http://dealbook.nytimes.com/2013/11/18/regulators-see-value-in-bitcoin-and-investors-hasten-to-agree/?_r=0
Jennifer Shasky Calvary, Director of Financial Crimes Enforcement Network (FinCEN), recently revealed that the watchdog and enforcement agency is actively examining the regulatory compliance of ... REMARKS OF JENNIFER SHASKY CALVERY, DIRECTOR, FINANCIAL CRIMES ENFORCEMENT NETWORK. 20130613.pdf 239.9 KB. THE VIRTUAL ECONOMY: POTENTIAL, PERPLEXITIES AND PROMISES UNITED STATES INSTITUTE OF PEACE. WASHINGTON, DC. June 13, 2013. Good afternoon. It is a pleasure to be joining you at this event to discuss the potential, perplexities, and promises of the virtual economy. I would like to thank ... Bitcoin is a distributed, worldwide, decentralized digital money … Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. r/Bitcoin. log in sign up. User account menu. 25. Prepared remarks of Jennifer Shasky Calvary, FinCEN Director, at ACAMS conference. Close. 25. Posted by. u/Gobitcoin. 5 years ago. Archived. Prepared remarks of Jennifer Shasky ... Director of the Financial Crimes Enforcement Network (FinCEN), Jennifer Shasky Calvery, said that bitcoin does not pose higher risks of terrorism financing than other payment methods. FinCEN Director Jennifer Shasky Calvery: So, let me start historically, we can go even a little wider with virtual currency. I think we first really started thinking about virtual currency quite a while ago, and it was in response to working with our law enforcement partners and it was back in the days of E-gold and when virtual currencies were backed by a commodity.
Aaron Klein, Jennifer Shasky Calvery, and moderator Jo Ann Barefoot participate in the fourth panel for the Central Bank of the Future Conference. October 2019. Learn more here: http ... HSBC's global head of financial crime threat mitigation, Jennifer Shasky Calvery discusses the impact of geopolitical uncertainty on banks' compliance work. She talks to The Banker's Silvia Pavoni. FinCEN director Jennifer Shasky Calvery warned virtual currency companies against fleeing US shores in the hope of more lenient regulatory frameworks elsewhere. "If business is going to leave the ... Ms. Jennifer Shasky Calvery [view testimony] Director Financial Crimes Enforcement Network Mr. David Cotney [view testimony] Commissioner of Banks Massachusetts Division of Banks Panel 2 Mr ... Interview with Jennifer Shasky Calvery, HSBC's Head of Financial Crime Threat Mitigation - Duration: 4:36. The Banker 2,763 views. 4:36. Cryptocurrencies: View From the Treasury - Duration: 28:20. ...