Bitcoin Exchange Circle Changes User Agreements

Circle is an online company focused on providing secure, simple and cost efficient technology for the storage and use of money. They are able to provide their services with the use of both the US dollar and bitcoin.  “Circle is building on open Internet standards and protocols, including digital currency technologies such as Bitcoin. We believe that the world can have an Internet of Value Exchange just as we have an Internet of Media and an Internet of Information Exchange that are similarly built on open platforms and networks.”

A FinCEN registered Money Service Business (MSB) individual going by Krellis on reddit claims to have recently received an email from Circle questioning his account activity. “Two days ago I got an email from Circle support asking me the source of the funds, what I was transferring for, and my occupation, for ‘regulatory reasons’. I didn’t love the questions but had nothing to hide so I shrugged and answered – they’re my own funds, coins from [LocalBitcoins] and Coinbase, and I’m doing arbitrage and cashing out from my [LocalBitcoins] sales at times.”

Circle is also regulated by FinCEN and registered as an MSB. An MSB in legal terms describes businesses or individuals who transmit or convert currency. It is not just restricted to banks, taking into consideration exchanges and other companies which do not fall into the ‘banking’ category. Over the past few weeks Krellis has been arbitraging between Circle and Coinbase to take advantage of a 1 percent return.

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