EFF helps people with their rights in the digital world and has adopted a defensive stance with it comes to helping people against legal issues emerging from new technologies. But, when it came to Bitcoin donations about two years back, the EFF stated, “While EFF is often the defender of people ensnared in legal issues arising from new technologies, we try very hard to keep EFF from becoming the actual subject of those fights or issues.”
Over the period of two years, the digital watchdog observed Bitcoin, public debates, watched the ecosystem develop and carried out its own research in and around the legal issues that may surround the virtual currency.
Announcing the latest development through a blog post, the EFF noted that a report from U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on top of its own research findings “have confirmed that, as a user of Bitcoin or any virtual currency, EFF itself is likely not subject to regulation.”
According to FinCEN users of bitcoin are not required to register bar those who actually exchange the virtual currency for U.S. dollars as these entities qualify as money services businesses, which are required to register.
The Foundation has said that even though it is accepting Bitcoin donations it is not endorsing the virtual currency. Noting that it supports “cryptographic experimentation”, the EFF said that it is of the opinion that others should come up with superior alternatives by remediating the potential shortcomings of Bitcoin.