The Morning Risk Report: Bitcoin Ruling May Not Have Broad Impact

Bitcoin isn’t money, according to a Miami-area judge. The closely watched case involved felony charges against a man who had been charged with illegally transmitting and laundering $1,500 worth of bitcoin. Observers thought the ruling could change how bitcoin are treated in an anti-money laundering context, but an expert said the ruling could have limited impact.
Ellen Zimiles, the global head of investigations and compliance at Navigant Consulting, said existing federal rules governing money transmitters are broader than Florida’s statute, limiting the broad implications of the judge’s ruling on bitcoin. ‘It may have an extensive impact in Florida, but I think [Treasury’s Financial Crimes Enforcement Network] will look at it and see if it’s consistent with their interpretation,’ she said.
Ms. Zimiles said Congress, when writing the federal anti-money laundering criminal statute, likely wouldn’t have excluded a transaction such as the one in question in the Florida case. ‘It’s the kind of transaction that the money-laundering statute was intended to address, but whether it does is something courts will decide going forward,’ she said.

This post was published at Wall Street Journal on Jul 28, 2016.