Bitcoin Group to Meet with 7 Government Agencies

File under: Not good, regulation coming.

Representatives from at least seven government agencies are scheduled to meet Monday with the main Bitcoin trade group amid a growing focus from regulators and law-enforcement authorities on the fledgling virtual currency, WSJ reports.

Patrick Murck, general counsel for the Bitcoin Foundation, said he would make a presentation and answer questions from representatives of the Federal Reserve, Treasury Department, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Internal Revenue Service, Federal Bureau of Investigation and Secret Service.[...]

The Treasury Department's Financial Crimes Enforcement Network earlier this year issued guidelines placing virtual-currency exchanges under the same comprehensive anti-money-laundering requirements as traditional money-transmission businesses such as Western Union Co.

Mr. Murck said he is pleased with the chance to provide more information "so we can both move forward to the same safe regulatory environment," reports WSJ

"We understand there are specific challenges that go along with Bitcoin and there is a lot of potential and we want to work with them to chart a safe course," he said of the government agencies.

FT reports:

In recent weeks, Bitcoin companies have acted to boost their presence with a new group called the Data Asset Transfer Authority (Data), which has been formed to serve as the self-regulatory body of the US virtual currency industry and is being advised by Promontory Financial Group, a consulting firm comprised of former top US financial regulators.