The CFPB, the government agency overseeing consumer protection in the financial sector has not included bitcoin and other virtual currencies and related products from its new prepaid regulatory requirements.
Virtual currencies like bitcoin and related products are outside the scope of a newly amended prepaid regulation [PDF] by the Bureau of Consumer Financial Protection (CFPB), a new final ruling on Wednesday revealed.
Revealing the process prior to the ruling, the governmental agency revealed that a number of commentators weighed in on to facilitate the Bureau’s decision. Those who submitted their comments and opinions included banks, a digital wallet service, a digital currency exchange, industry trade associations, consumer advocacy groups, a law firm representing a coalition of prepaid users and a non-governmental virtual currency policy organization.
The ruling was determined to see if digital currencies like bitcoin ultimately fell within the scope of Regulation E [PDF], which implements the Electronic Fund Transfer Act.
Fundamentally, the regulation provides consumers with protections, as