Technology and Licensing

Stricter Federal and State Regulations for Virtual World Currency Transactions

FinCEN released guidance on the “Application of FinCEN’s Regualations to Persons Administering, Exchanging, or Using Virtual Currencies” on March 18, 2013.[1]The guidance clarifies the requirements for businesses and individuals making use of virtual currency in regards to MSB registration with FinCEN. 

This clarification is of significant importance due to the booming expansion of Virtual Worlds like Second Life, Entropia Universe, and others. Many users login to these virtual world grids and purchase in game currency without giving much thought to state or federal regulations regarding the purchase of said currency. Last year, there were many discussions circulating the web about who would need to register as an MSB according to FinCEN’s March 18, 2013 Guidance on Virtual Currencies.