Bitcoin and Money Laundering: Mining for an Effective Solution

Abstract

Bitcoin is a disruptive, emerging virtual currency that poses unique challenges for authorities tasked with regulating money laundering. This Note examines the application of federal and state anti-money laundering regulations to Bitcoin and analogous virtual currencies, looking specifically for the most efficient and effective option.

Keywords: Bitcoin, money laundering, AML, FinCEN, cryptocurrency, digital currency, e-commerce, virtual currency, cybercrime, money transmitter, law and technology, Silk Road, payment systems

JEL Classification: A10, E40, E42, E50, G21, K20, K23, K42, L86, O30, O33, O34, O38, O50, O51