Juan Llanos, member of the Regulatory Affairs Committee of the Bitcoin Foundation, and I agree that yesterday was a turning point for Bitcoin and digital currencies in general.
In a hearing at the US Senate Committee on Homeland Security and Governmental Affairs with Senator Thomas Carper a panel of high ranking government officials expressed the same concept: “digital currencies are legal and we must support innovation”.
However this idea was communicated with a reasonable condition: “but all new services and new digital currency providers must comply with the law, get registered and get proper authorizations, licenses, and establish the required internal compliance processes.”
Juan was present at the hearings in Washington and in this interview he talks about the key concepts and the highlights of the testimonies and Q&As.
We spoke about:
– What is the importance of this particular Senate Committee?
– The positive attitude of Senator Thomas Carper.
– Who were the government officials testifying?
– What were the key concepts expressed?
– Is Bitcoin declared legal?
– What is the tone now going forward?
If you are a Bitcoin entrepreneur anywhere in the world you need to watch this interview with Juan Llanos, member of the regulatory affairs committee of the Bitcoin Foundation.
In many cases it doesn’t matter where your company is located, what matters is where your customers reside!
Also, if you are a Bitcoin enthusiast and customer of new Bitcoin services, this concerns you too. The rules are strict and if your wallet or exchange providers are not properly licensed you could lose your money.
We spoke with Juan about these topics:
– What is FinCen?
– How do startups go about registering on a federal level?
– What is the cost?
– What are the requirements to register on a state by state level?
– What are the different “styles” of regulation between states?
– What are the implications for international startups?
Interview with Juan Llanos Of The Bitcoin Foundation
Just as I realize that Bitcoin is such a world changing technology, government agencies and regulators are also realizing how risky it may be.
It’s not about government obstructionism, it’s about money laundering, terrorism financing, and the integrity of the financial system. These issues are top priority in Capitol Hill and the White House and we just have to live with it.
Juan Llanos is member of the Regulatory Affairs Committee of the Bitcoin Foundation and a veteran anti money laundering expert. In this interview he opened my eyes as to what are all the risks involved in starting a Bitcoin or digital currency business.
Yes, FinCen has laid out guidelines in March of this year, but the issues are more profound and more government agencies, federal and state, are looking at crypto-currencies and analyzing their nature to decide whether to establish more controls or not.
My personal opinion is that FinCen settled the “money transmitting” and “exchange from digital to fiat” issues, but the other questions are: Is Bitcoin an investment security? Where are bitcoins deposited? Is the block chain the “bank”? Should the block chain itself be regulated just like financial institutions are?.
Of course the best scenario would be to regulate the layer of the services operating on top of the Bitcoin network instead of Bitcoin itself, but the issues are still open and thus so are the risks. This includes trading risks.