econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 05 December 2015

Bitcoin's Bright Side

from the Atlanta Fed

-- this post authored by Douglas A. King

My kids' anticipation for the holiday season is at an all-time high because of the upcoming release of the new Star Wars movie. They are fans of Yoda, Chewbacca, and Luke, but are obsessed with the "Dark Side" and its band of characters, most notably Darth Vader. There is something about the mystery of the "dark side" that draws people in. Perhaps that is one reason that so much of the media coverage and discussion of Bitcoin has been focused on its being the preferred payment instrument for criminal enterprises.

Because the Bitcoin protocol does allow for a level of anonymity that is attractive to criminals, the Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Act compliance risks are heightened for transactions with bitcoin. Over the past several years, companies have emerged within the Bitcoin ecosystem seeking to make it more accessible to obtain and easier to use for legitimate payments. But how do they manage the BSA/AML compliance risks?

To minimize these risks, companies in the Bitcoin ecosystem are adopting policies, practices, and procedures that leverage the transparency but also minimize risks associated with the level of anonymity Bitcoin offers. These practices are intended to make Bitcoin a safer payment system, while also enhancing the ability of financial institutions, which might otherwise be cautious about the BSA/AML risks, to bank Bitcoin-related companies successfully.

The Retail Payments Risk Forum took a deep dive into the types of companies entering the Bitcoin ecosystem, assessing the regulatory landscape and identifying measures that these companies can take to fulfill regulatory obligations and minimize BSA/AML regulatory compliance risks. Among one of the measures identified in a paper available on the Atlanta Fed's website, Bitcoin-related companies should have a BSA/AML compliance program in place that is led by a dedicated compliance officer with support from a staff of professionals.

Just as in the Star Wars movies, which depict the ongoing struggle between the good guys - the Rebels - and the Dark Side, Bitcoin will continue to have a tug of war between the good forces and the bad. While the criminal element will continue to force attention to the risks of Bitcoin, it will be up to the new entrants into the Bitcoin ecosystem to mitigate these risks if Bitcoin is to enter the mainstream. Details on managing BSA/AML risks associated with Bitcoin can be found in the paper.

About the Author

Douglas A. King is a payments risk expert in the Retail Payments Risk Forum at the Atlanta Fed

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Many (But Not All) Dynamics Improving But Federal Tax Receipts Are Down
The Economic Future of The Berkshires - A Reconsideration
News Blog
After A Lackluster Outturn In 2016, Economic Activity Is Projected To Pick Up Pace In 2017 And 2018
Invading China, One Trade Dispute At A Time
Credit Market Arbitrage And Regulatory Leverage
Infographic Of The Day: The Trump Effect On Currencies
Early Headlines: Asia Stocks Mixed, Oil And Dollar Steady, Robots Are Coming, Trump Vows Ins. For All, May Goes For Hard Brexit, China Wants To Build US Infrastructure And More
January 16, 2017 Weather and Climate Report - Split Personality on Steroids
The World's Staggering Wealth Divide
FIFA World Cup Brand Worth More Than Ever
What Is Heart Failure? It's Not As Common A Cause Of Death As Reports Would Have Us Believe
Economic Growth, More Debt And More Employment
What We Read Today 16 January 2017
Why Doesn't Capital Always Flow To High-Growth Areas?
Trends In Arbitrage-Based Measures Of Bond Liquidity
Investing Blog
Market And Sector Analysis 16 January 2017
The Investment Potfolio
Opinion Blog
Be Prepared For A Violent Fed Reversal
Nature Of Debt Differs Between China, Japan And The U.S.
Precious Metals Blog
Gold's 2016 Gain Indicates A 19% Surge In 2017
Live Markets
16Jan2017 Pre-Market Commentary: Wall Street Closed For MLK Holiday, European Markets Lower, Crude Prices Slip, Investors Await Serious Market Correction As Some Bearish Analysts Claim The Sky Is About To Fall
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved