Comparing A Federal Reserve Document Revision

In October 2015 The Federal Reserve Bank of Atlanta posted a Retail Payments Risk Forum Working Paper “Banking Bitcoin-Related Businesses: A Primer for Managing BSA/AML Risks” which was recently revised: https://www.frbatlanta.org/-/media/Documents/rprf/rprf_pubs/2016/banking-bitcoin-related-businesses.pdf?la=en

I decided it might be interesting to compare the two documents.

First it should be noted that as explained in the paper

The paper is intended for informational purposes and the views expressed in this paper are those of the author and do not necessarily reflect those of the Federal Reserve Bank of Atlanta or the Federal Reserve System.

And it is now duly noted in the revised February that:

This paper is not a replacement, update, or supplement to BSA/AML guidance requirements provided in November 2014 by the FFIEC.

So is a Wallet provider an Exchange? I guess it depends on the types of services that they provide

ORIGINAL

FinCEN has not issued an administrative ruling specific to wallet providers. If a wallet provider simply provides a user with the means to maintain bitcoins, it doesn’t appear that FinCEN would label them as an administrator or exchange. Should the wallet provider enable additional functionality which ultimately allows for the transmission of real currency for virtual currency, it is possible that the wallet would be considered an exchange.

NEW/REVISED

FinCEN has not issued an administrative ruling specific to wallet providers. Wallet providers can simply provide a user with the means to maintain bitcoins. Alternatively, wallet providers can enable additional functionality that ultimately allows for the transmission of real currency for virtual currency, with the potential to be considered an exchange.