Virtual Uncertainty: Developments in the Law of Electronic Payments and Financial Services
13 Pages Posted: 19 Mar 2014
Date Written: 2013
This article surveys developments in the laws relating to virtual currencies and their regulation by the Department of Treasury's Financial Crimes Enforcement Network, and enforcement actions taken by the Departments of Treasury, Homeland Security and Justice against funds held in deposit accounts owned by Dwolla, Mt. Gox, and Mutum Sigillum, LLC, and DOJ's action against Liberty Reserve. It also analyses changes to the CFPB's cross-border remittance transfer regulations, and its first use of its preemption authority to preempt portions of the Maine and Tennessee gift card laws pertaining to expiry, and the first action by the FDIC against a bank for unsafe and unsound banking practices related to prepaid cards managed by the bank. Finally, it evaluates section 311 and designation of institutions as institutions of primary money laundering concerns and correspondent banking relationships.
Keywords: virtual currencies, Bitcoin, Dwolla, Mt. Gox, Liberty Reserve, Mutum Sigillum, LLC, seizure warrant, Department of Justice, Department of Treasury, Department of Homeland Security, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, FinCEN, money services business rule
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