Wells Fargo organizes meet to discuss Bitcoin rules: FT

Tue Jan 14, 2014 6:12pm EST

Some of Bitcoin enthusiast Mike Caldwell's coins are pictured at his office in Sandy, Utah, September 17, 2013.REUTERS/Jim Urquhart

Some of Bitcoin enthusiast Mike Caldwell's coins are pictured at his office in Sandy, Utah, September 17, 2013.

Credit: Reuters/Jim Urquhart

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(Reuters) - Wells Fargo & Co has called finance executives, virtual currency experts and U.S. government representatives to discuss "rules of engagement" with Bitcoin amid concern about the money laundering risk of the currency, the Financial Times reported.

The meeting, scheduled for Tuesday in San Francisco, focuses on the security issues surrounding banking and Bitcoin as financial regulators warn consumers on the risks of using unregulated online currencies, the London-based financial daily reported. (link.reuters.com/jen95v)

The fourth-largest U.S. bank by assets has shown interest in dealing with a potential new Bitcoin economy, but regulatory uncertainty has deterred banks from offering services to virtual currency start-ups, the newspaper said on Tuesday.

Bitcoin, which unlike conventional money is bought and sold on a peer-to-peer network independent of any central authority, has grown popular among users who lack faith in the established banking system.

Wells Fargo's anti-money laundering chief, Jim Richards, has launched a group to examine how the bank might safely offer Bitcoin-related services or banking arrangements to virtual currency entrepreneurs, the Financial Times said, quoting people familiar with the matter.

The bank aims to draw up a new set of anti-money laundering rules for financial institutions to follow when dealing with virtual currency start-ups, the paper said, citing a person familiar with the matter.

(Reporting by Avik Das in Bangalore; Editing by Kirti Pandey)

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Comments (2)
blaqfather wrote:
Bitcoin has nothing to do with the banks. It never has, and what the banks have to say about it, is completely irrelevant. – If it was the banks choice, they would kill the idea, because it cuts them out of their fees for almost everything. These are the same banks that tell us that ” bubbles ” can’t happen under their watch. They are the same banks, that bet on mortgages, then one month later, bet against them. Bitcoins are here to stay, whether the banks like it, or not.

Jan 15, 2014 12:23pm EST  --  Report as abuse
RealityIs wrote:
The banks have no more influence over Bitcoin than the recording industry does over torrents. And that’s by design.

They will make an effort to regulate and control it, attempting to make Bitcoin fit into their legacy system.

The survivors in the banking industry will be those early movers who try and fit into the Bitcoin paradigm, not the other way around.

Jan 15, 2014 8:04pm EST  --  Report as abuse
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