US Department of Treasury Targets Bitcoin Poker Sites

The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury, has taken aim at bitcoin poker sites.

In March, FinCEN exercised its power under the Bank Secrecy Act to clarify its position on convertible virtual currencies. The Final Rule amendment defines a person as an “exchanger” and “money transmitter” if he provides the means by which an exchange of convertible virtual currency is transferred from one person to another. The convertible virtual currency must be used as a substitute for a legal, centralised currency (such as the dollar).

The clarification means bitcoin poker sites that accept US players could find themselves in hot water if they facilitate the transfer of convertible virtual currency, which occurs whenever a player gains from or loses to another bitcoin poker player. Read more here: http://www.bitcoinpoker.org/news/us-department-of-treasury-targets-bitcoin-poker-sites