Bitcoin: Getting Down to Virtual Currency Basics
Hot potato, hot potato, who’s stuck with the hot potato?
That is what virtual currency Bitcoin has resembled in the past few weeks as multiple credit union players found themselves covered in bad press due to Bitcoin.
Trading in Bitcoin is legal, a point that was confirmed by FinCEN guidance issued earlier this year. But there are caveats, said Braden Perry, a former federal enforcement attorney now with the Prairie Village, Kan.-based firm Kennyhertz Perry, LLC.
“While there are no black letter laws prohibiting virtual currency in the traditional financial system, an institution wishing to offer a Bitcoin-denominated account would likely face an uphill legal and regulatory battle,” he said.