FinCen Rules Bitcoin Investment Firm Not Money-Services Biz

A man who operates a bitcoin investment company recently received an important clarification from the U.S. Financial Crimes Enforcement Network (FinCen).

Andre De Castro’s business, RightClick LLC, is not a money-services business in the eyes of the federal government, according to FinCen.

RightClick lets individuals buy and sell virtual currencies using U.S. dollars and their own bank accounts. PaymentsSource reports that De Castro wrote a letter to FinCen in May regarding whether his business should be designated as a money-services company.

In its response, the U.S. financial-crimes watchdog stated that RightClick was not.

“To the extent that the company purchases and sells convertible virtual currency paying and receiving the equivalent value in currency of legal tender to and from counterparties, all exclusively as investments for its own account, it is not engaged in the business of exchanging convertible virtual currency for currency of legal tender for other persons,” the response read.

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