May 2018 JD Supra

Investors in Virtual Currency (VC) utilize the services of on-line “secure” platforms for buying, selling, transferring, and storing VC.  The providers of these services are known as web-wallets (Coinbase is an example).  They are required to register and operate as Money Service Businesses (MSB) by the Financial Crimes Enforcement Network (FinCEN).   MSB’s that operate in the U.S. are regulated by the state.  This means that while web-wallets are not subjected to the direct oversight of the Securities Exchange Commission (SEC), the MSB’s are required to keep records and file reports on certain transactions to FinCEN by Bank Secrecy Act (BSA) regulations.       https://www.jdsupra.com/legalnews/who-monitors-digital-currency-wallets-25793/