Web Money Gets Laundering Rule
The U.S. is applying money-laundering rules to "virtual currencies," amid growing concern that new forms of cash bought on the Internet are being used to fund illicit activities.
The FBI report last year said Bitcoin attracts cybercriminals who want to move or steal funds. "Bitcoin might also logically attract money launderers and other criminals who avoid traditional financial systems by using the Internet to conduct global monetary transfers," the report said. An FBI spokeswoman declined to comment when asked about the agency's concerns regarding virtual currencies.
For now, the size of the bitcoin market is so small that it could be difficult or costly to move and exchange large amounts of illicit funds. Another danger: extreme price fluctuations.
The value of a bitcoin rose to more than $60 a unit from less than $49 on one exchange following the release of FinCen's new guidance—a move that Mr. Garzik attributed partly to a new level of certainty and legitimacy that federal recognition attaches to bitcoin transactions.
http://m.us.wsj.com/articles/a/SB10001424127887324373204578374611351125202?mg=reno64-wsj
Jittery Spaniards Seek Safety in Bitcoins
Since Sunday, a trio of Bitcoin apps have soared up Spain’s download charts, coinciding with news that cash-strapped Cyprus was planning to raid domestic savings accounts to pay off a $13 billion bailout tab. Fearing contagion on the other end of the Mediterranean, some Spaniards are apparently looking for cover in an experimental digital currency.
“This is an entirely predictable and rational outcome for what’s happening in Cyprus,” says Nick Colas, chief market strategist at ConvergEx Group. “If you want to get a good sense of the stress European savers are feeling, just watch Bitcoin prices.”
The value of the virtual currency has soared nearly 15 percent in the last two days, according to the most-recent pricing data. “One hundred percent of that is due to Cyprus,” says Colas. “It means the Europeans are getting involved.”
That Spaniards would consider converting a portion of their dwindling savings into a peer-to-peer currency vulnerable to wild price fluctuations and the odd thieving Trojan speaks volumes about banking confidence in some parts of Europe. As German economist Peter Bofinger warned in aninterview with Spiegel Online: “European citizens must now fear for their money.” The same apps download data, however, showed that Italians aren’t ready to abandon commercial banking, remarkable as many Italians still recall that black day in 1992 when they woke up to a levy on their savings accounts to prop up the nation’s teetering finances.
http://mobile.businessweek.com/articles/2013-03-20/jittery-spaniards-seek-safe-haven-in-bitcoins
It's not something I would be interested in doing, but it shows the distrust in Europe.
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