Virtual Currency References

Virtual Currency and Cryptocurrency References

by John Bandler A brief history of virtual currency by John Bandler

These virtual currency references are a compilation of various links and references I have compiled over the years.

I refer to when speaking on virtual currency, cryptocurrency, virtual assets, and cybercrime money laundering. It is also a starting point for students researching these issues.

(I used to include most of these in my main article on virtual currency, but separated them because it was getting unwieldy and long.)

See my update section down below.

My articles and books

Cyberlaw book
Cryptocurrency past is prologue: before and after FTX, John Bandler, Reuters Legal News, January 17, 2023, on Reuters at https://www.reuters.com/legal/transactional/cryptocurrency-past-is-prologue-before-after-ftx-2023-01-17(opens in new tab)/, and hosted here with permission (opens in new tab)
John Bandler, Stemming the Flow of Cybercrime Payments and Money Laundering, ACAMS Today (June-August 2017) https://www.acamstoday.org/stemming-the-flow-of-cybercrime-payments/
John Bandler, Lawyers, Drugs and Money: AML in Popular Media, by John Bandler, ACAMS Today (March 2018) https://www.acamstoday.org/lawyers-drugs-and-money-aml-in-popular-media/
John Bandler, Virtual Currency (including digital currency, cryptocurrency, virtual assets, and "value that substitutes for currency") https://johnbandler.com/virtual-currency-virtual-assets-cryptocurrency/
John Bandler, Money Laundering Investigations, within Encyclopedia of Security and Emergency Management, 2018, Shapiro L., Maras MH. (eds), Springer, Cham, https://doi.org/10.1007/978-3-319-69891-5_26-1(opens in new tab)
John Bandler & Antonia Merzon, Cybercrime Investigations: A Comprehensive Resource for Everyone (CRC Press, 2020).
Cybercrime Investigations book overview page: https://johnbandler.com/cybercrime-investigations/
John Bandler and Antonia Merzon, A Call for Better Cybercrime Investigation, ACAMS Today (March 2020) https://www.acamstoday.org/a-call-for-better-cybercrime-investigation/
Antonia Merzon and John Bandler, The Need for Improved Cybercrime Investigations: Why We Wrote This Book (June 19, 2020) https://www.routledge.com/blog/article/the-need-for-improved-cybercrime-investigations-why-we-wrote-this-book
The Western Express Case
Ethics in Government. We cannot discuss cryptocurrency and virtual currency today without discussing ethics in government. Is government trying to do the right things for the right reasons, or is it acting based upon self-interest of individuals serving in government?

Some laws and regulations

United States
- 31 CFR § 1010.100 (m) Currency defined, https://www.law.cornell.edu/cfr/text/31/1010.100
- 18 USC § 1956 Laundering of Monetary Instruments, https ://www.law.cornell.edu/uscode/text/18/1956
- 18 U.S. Code § 1957, Engaging in monetary transactions in property derived from specified unlawful activity, https://www.law.cornell.edu/uscode/text/18/1957(opens in new tab)
- 18 U.S. Code § 1960, Prohibition of Unlicensed Money Transmitting Businesses https://www.law.cornell.edu/uscode/text/18/1960(opens in new tab)
New York State
- NYS PL § 470.00 et seq., Money Laundering, https://codes.findlaw.com/ny/penal-law/pen-sect-470-00.html
- NYS Banking Law § 650, Unlicensed Money Transmitter, https://codes.findlaw.com/ny/banking-law/bnk-sect-650.html
- 23 NYCRR 200, NYS Department of Financial Services Rule 200 on Virtual Currencies, https://www.law.cornell.edu/regulations/new-york/title-23/chapter-I/part-200
Even more links and citations below

Financial Crimes Enforcement Network (FinCEN) (the U.S., our financial intelligence organization and AML regulatory organization)

FinCEN, FIN-2013-G001, Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies, March 18, 2013, https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf(opens in new tab)
FinCEN, FIN-2019-A003, Advisory on Illicit Activity Involving Convertible Virtual Currency, May 9, 2019, https://www.fincen.gov/sites/default/files/advisory/2019-05-10/FinCEN%20Advisory%20CVC%20FINAL%20508.pdf
FinCEN, FIN-2019-G001, Guidance on Application of FinCEN’s Regulations to Certain Business Models
Involving Convertible Virtual Currencies, May 9, 2019, https://www.fincen.gov/sites/default/files/2019-05/FinCEN%20Guidance%20CVC%20FINAL%20508.pdf(opens in new tab)
FinCEN Advisory, October 1, 2020, FIN-2020-A006, Advisory on Ransomware and the Use of the Financial System to Facilitate Ransom Payments, https://www.fincen.gov/sites/default/files/advisory/2020-10-01/Advisory%20Ransomware%20FINAL%20508.pdf(opens in new tab)

Office of Foreign Assets Control (OFAC)

OFAC, Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments, October 1, 2020, https://home.treasury.gov/system/files/126/ofac_ransomware_advisory_10012020_1.pdf(opens in new tab)

Financial Action Task Force (FATF) (an international organization devoted to fighting financial crime and money laundering)

FATF: The FATF Recommendations, Adopted 2012, updated June 2019, http://www.fatf-gafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.pdf
FATF: Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers, June 2019, http://www.fatf-gafi.org/media/fatf/documents/recommendations/RBA-VA-VASPs.pdf
FATF: Guidance for a Risk-Based Approach to Virtual Currencies, June 2015, http://www.fatf-gafi.org/media/fatf/documents/reports/Guidance-RBA-Virtual-Currencies.pdf(opens in new tab) (Older, but discusses the Western Express case, one of the earliest virtual currency cybercrime money laundering cases.)
FATF: Regulation of virtual assets, October 19, 2018, http://www.fatf-gafi.org/publications/fatfrecommendations/documents/regulation-virtual-assets.html(opens in new tab)
FATF: Virtual Currencies, Key Definitions and Potential AML/CFT Risks June 2014, http://www.fatf-gafi.org/media/fatf/documents/reports/Virtual-currency-key-definitions-and-potential-aml-cft-risks.pdf(opens in new tab)
FATF: Public Statement – Mitigating Risks from Virtual Assets, February 22, 2019, http ://www.fatf-gafi.org/publications/fatfrecommendations/documents/regulation-virtual-assets-interpretive-note.html(opens in new tab)

United States Department of Justice (DOJ)

Cryptocurrency Enforcement Framework, Report of The Attorney General’s Cyber Digital Task Force, Department of Justice, (October 2020) https://www.justice.gov/cryptoreport(opens in new tab)

NYS Department of Financial Services (NYS DFS) (New York's financial regulator)

NYS Department of Financial Services Rule 200 on Virtual Currencies, 23 NYCRR 200, Virtual Currencies, and related webpages.

NYS DFS Rule 200 at Cornell Law's site: https://www.law.cornell.edu/regulations/new-york/title-23/chapter-I/part-200(opens in new tab)

On 6/24/2020 there was some interesting news about partnership with the State University of New York (SUNY) and potential conditional licensing, so I have updated the links below.

New York State Attorney General (NYS AG or NYAG) (providing consumer and investor protection within NYS)

Virtual Markets Integrity Initiative Report, Sept 18, 2018, https://ag.ny.gov/sites/default/files/vmii_report.pdf(opens in new tab)

Securities and Exchange Commission (SEC)

The SEC protects investment risk, they assert jurisdiction over virtual currencies used as investment vehicles.
SEC, Crypto Assets, https://www.sec.gov/securities-topics/crypto-assets(opens in new tab)
SEC Investor Alert, https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/investor-39(opens in new tab)
SEC Investor Alert, https://www.sec.gov/investor/alerts/ia_virtualcurrencies.pdf(opens in new tab)

Commodities and Futures Trading Commission (CFTC)

The CFTC regulates commodities and currency trading, they offer guidance on virtual currencies, and assert jurisdiction over them as commodities subject to the Commodity Exchange Act:
CFTC home page, https://www.cftc.gov/(opens in new tab)
CFTC Digital Assets, https://www.cftc.gov/digitalassets/index.htm(opens in new tab)

Internal Revenue Service (IRS)

The IRS manages our federal tax system. They make clear that virtual currency income is taxable and must be reported to the IRS.
IRS, Digital Assets, https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets(opens in new tab)
https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions(opens in new tab)
https://www.irs.gov/pub/irs-drop/n-14-21.pdf

U.S. Consumer Financial Protection Bureau (CFPB)

The CFPB is another financial regulator. In November 2022 they put out a bulletin regarding virtual assets and cryptocurrency.
https://www.consumerfinance.gov/about-us/newsroom/cfpb-publishes-new-bulletin-analyzing-rise-in-crypto-asset-complaints/(opens in new tab)
https://files.consumerfinance.gov/f/documents/cfpb_complaint-bulletin_crypto-assets_2022-11.pdf(opens in new tab)
https://files.consumerfinance.gov/f/201408_cfpb_consumer-advisory_virtual-currencies.pdf(opens in new tab)

The Financial Industry Regulatory Authority (FINRA)

FINRA is a nongovernmental organization that creates and enforces rules for brokers and broker-dealers.
FINRA, Bitcoin Basics, https://www.finra.org/investors/insights/bitcoin-basics(opens in new tab)

Miscellaneous

Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), https://www.congress.gov/bill/119th-congress/senate-bill/1582(opens in new tab)
"Fact Sheet": President Donald J. Trump Signs GENIUS Act into Law, https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law/(opens in new tab)

U.S. Executive orders

Biden era (later reversed by Trump administration)
- Fact Sheet on President Biden's Executive Order on Ensuring Responsible Development of Digital Assets, 3/9/2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/fact-sheet-president-biden-to-sign-executive-order-on-ensuring-responsible-innovation-in-digital-assets/(opens in new tab)
- Executive Order on Ensuring Responsible Development of Digital Assets, 3/9/2022, https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/(opens in new tab)
Trump II era 2025-
- COMING (when I get the time)

Influences upon law and regulation

Your research into virtual currency and cryptocurrency law and regulation cannot be complete without examining the influences upon it, and enormous changes starting January 2025 with the second Trump Administration. Consider this progression:

Early uses of virtual currency and cryptocurrency for anonymous payments, criminal activity, money laundering
Bitcoin cryptocurrency viewed by some consumers (low level investors) as a potential investment (buy low, sell high, mining). Low level investors without the ability to move markets or influence enforcement and regulation.
Cryptocurrency viewed by high level investors as an investment (venture capital, private equity, hundred millionaires, billionaires). High level investors with the ability to move markets, and to influence law, regulation, enforcement, politics, and government officials.
Significant political campaign donations by cryptocurrency (virtual currency) interests.
Involvement of government officials and/or candidates and/or their families in cryptocurrency businesses.
Loosening (abandonment?) of enforcement and regulation (January 2025-?)

As one views this, consider principles of government and ethics, and what government is supposed to do. Government is supposed to try do the right thing, for the right reason, serving the right interests. If government officials, or government individuals, are serving their own personal interests (whether that involves profit, investment, campaign contributions, or any other personal interest) then that is not serving the country, but serving self-interest. That's not what government is supposed to do.

As we assess what has influenced law and regulation, and what influences it today, citizens should seek to ensure it is based upon the interests of the country, not self interest of government officials.

YouTube videos on money laundering (fun watching)

I moved this to a new webpage, Law in popular media

Fun YouTube videos, from The Wire, Breaking Bad, Scarface, and more.

Consider how the typologies for virtual currency and cybercrime money laundering will differ from cash money laundering depicted in these videos.

Also worth a watch or read on cryptocurrency, NFTs, etc.

Dan Olson (Folding Ideas), Line Goes Up - The Problem With NFTs, Jan 21, 2022, Folding Ideas channel via YouTube, https://youtu.be/YQ_xWvX1n9g(opens in new tab)
James Mickens, Blockchains Are a Bad Idea (James Mickens), HBS Digital Initiative channel via YouTube, https://youtu.be/15RTC22Z2xI(opens in new tab)
Eric Lipton and David Yaffe-Bellany, Crypto Industry Helps Write, and Pass, Its Own Agenda in State Capitols, New York Times, April 10, 2022, https://www.nytimes.com/2022/04/10/us/politics/crypto-industry-states-legislation.html(opens in new tab)
Farhad Manjoo, What Is Happening to the People Falling for Crypto and NFTs, New York Times, May 5, 2022, https://www.nytimes.com/2022/05/05/opinion/crypto-nfts-web3.html(opens in new tab)
Paul Krugman, How Crypto Became the New Subprime, New York Times, Jan 27, 2022, https://www.nytimes.com/2022/01/27/opinion/cryptocurrency-subprime-vulnerable.html(opens in new tab)
David Yaffe-Bellany, Millions for Crypto Start-Ups, No Real Names Necessary, New York Times, March 2, 2022, https://www.nytimes.com/2022/03/02/technology/cryptocurrency-anonymity-alarm.html(opens in new tab)
Angus Berwick, Dan Levine and Tom Wilson, Exclusive: U.S. Justice Dept is split over charging Binance as crypto world falters, Reuters, Dec 12, 2022, https://www.reuters.com/markets/us/us-justice-dept-is-split-over-charging-binance-crypto-world-falters-sources-2022-12-12/(opens in new tab)
Kim Zetter, Ukrainian Carder in $5 Million Ring Sentenced to 14-Plus Years in Prison, Wired (August 8, 2013) https://www.wired.com/2013/08/carder-eskalibur-sentenced/ (Article about the Western Express cybercrime investigation and prosecution, a case mentioned throughout book).

Yes, all the above are critical of the recent hype on cryptocurrency and NFTs.