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Bitcoin trader Mt. Gox registers as currency exchange to comply with US money laundering laws

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bitcoin 1020 (casascius)
bitcoin 1020 (casascius)

Bitcoin trading giant Mt. Gox has officially registered with the US Treasury's Financial Crimes Enforcement Network (FinCEN) in an apparent effort to comply with government regulations that have previously caused hiccups for the exchange. FinCEN recently began mandating that entities trading between Bitcoin and other currencies register as part of its financial crime investigation efforts. The potential for virtual currencies like Bitcoin to be used in money laundering schemes has been an ongoing concern, and the Treasury Department has maintained that these recent regulations are meant to address just that.

Mt. Gox's registration was received by FinCEN last Wednesday. The exchange, which is responsible for around 80 percent of global Bitcoin trading, had tried to avoid regulation through a partnership with the Seattle-based Coinlab. The partnership didn't work out — and since then Mt. Gox has run into a few legal issues due to its lack of registration. The Wall Street Journal reports that one of Mt. Gox's account seizures was due to allegations that it was "part of an unlicensed money service business."