In the Fall issue of the American Bar Association’s Criminal Justice Magazine, I write about the recent developments in the regulation of virtual currencies. The Federal Government recently indicted several administrators of Liberty Reserve, a virtual currency, for money laundering. This appears to be only the beginning of heightened scrutiny for virtual currencies like Liberty Reserve and BitCoin. The Department of the Treasury’s Financial Crimes Enforcement Network, or “FinCEN,” has recently issued guidance for the operators and users of virtual currency, which I analyze and explain. Virtual currencies are in the news every day, and understanding the mechanics of how they work and how they’re regulated is an important first step in assessing whether they fit your company’s needs.