user1525: As seen in recent news, FinCEN has issued a statement on its classification of virtual currencies: http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html
Hypothetically suppose I mine BTC and sell it on MtGox for USD. Do I need to register with FinCEN as a Money Transmitter(MT)? My interpretation of the above document indicates yes, I do; but I could also see MtGox (which is registered with FinCEN) maintaining my regulatory compliance, via proxy.

user3429: "A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."
A person is defined as this, even if they are an MSB:
"FinCEN’s regulations define “person” as “an individual, a corporation, a partnership, a trust or estate, a joint stock company, an association, a syndicate, joint venture, or other unincorporated organization or group, an Indian Tribe (as that term is defined in the Indian Gaming Regulatory Act), and all entities cognizable as legal personalities.” 
So, yes, you have to register as a money transmitter if you sell your bitcoins after you have mined them. There is no designated threshold for money transmitters. 

user4724: I think the case of mining as part of a pool is, in reality a very special case of providing a cloud based server farm service.   Essentially, those operating such a server farm are having its use contracted to the pool for an hourly (or shift) fee.   The fact that the payment for the service is done in bitcoin does not make the server farm operator a miner, nor do they actually create any currency.  
Even the pool itself is not creating a real currency, instead they are creating (or locating) a commodity which other people believe has a particular value.  This is no different than pumping oil out of the ground or mining for silver or gold.  No one would claim that a gold or silver miner or a farmer selling their crops is actually an MSB when they take their product to market would they? No, they are simply selling their commodity at the market price.  What difference does it make whether they use a drill, a tractor or a computer to prepare the commodity for the market?
That said, it will be interesting to see what happens if/when any of the assumptions here are challenged in a court case.  My supposition is that it will first happen with a true criminal enterprise (drugs or gangs for instance) since that will blur the distinctions and allow the case to set a supposed precedent and cause more confusion which is the best way to discourage general use by the under-educated majority.  
FMI on bitcoins as a commodity : http://blog.bitcointitan.com/post/17789738826/what-u-s-regulations-apply-to-bitcoins-as-commodities

user1878: Maybe - check with a lawyer
You don't have to register if

You use a website (MtGox or Coinlab) to buy coins
You use coins to buy "stuff" (Namecheap, alpaca socks, etc)

You might have to register if:

You run a wallet hosting company

The FINCen law requires people to register if they

Are a mixing service
Participate in the Bitcoin OTC market and issue one on one trades with people for cash (or cash substitute)
Run an online trading site (MtGox, or similar)

I suspect the same requirements apply for Money Orders:

Anyone who accepts Bitcoins for any software or service (over $1,000)

However, I do understand your concern in this sentence:

By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is  engaged in transmission to another location and is a money transmitter

So what does a Bitcoin miner actually do?

It performs a service for the Bitcoin network and gets paid for it in the form of transaction fees.
This value increases over time.
It is hardware that competes to solve a math problem and wins new coins for that block.
This value decreases over time.

Here is an example of a Miner that probably MUST register: A solo miner is configured to not broadcast Tx to other hosts. The miner accepts a Tx with a huge fee. This money substitute in exchange for a service is covered not by the FinCEN note in the OP's post, but implied by this link.
I think it's a grey area that isn't well described, and we should look for more guidance.
Aside: 
I don't like saying mining "creates units of this convertible virtual currency".  I think the actual creation occurred in 2009 when the Bitcoin Protocol was launched. I would argue that the protocol "creates" the coins, and USA based miners are just claiming them.

user3047: No, the fincen guidance you posted has it in plain english that you do not. A miner is simply a user.
 c. De-Centralized Virtual Currencies

        A final type of convertible virtual currency activity involves a 
de-centralized convertible virtual currency (1) that has no central 
repository and no single administrator, and (2) that persons may obtain 
by their own computing or manufacturing effort.

        A person that creates units of this convertible virtual currency and 
uses it to purchase real or virtual goods and services is a user of the 
convertible virtual currency and not subject to regulation as a money transmitter. 
By contrast, a person that creates units of convertible virtual currency and sells
those units to another person for real currency or its equivalent is 
engaged in transmission to another location and is a money transmitter....

On the exchange you are buying/selling bitcoins. The exchange carries the burden of giving you legal tender or a different cryptocurrency. The exchange carries the burden of regulation, according to the FinCen regulations. In the US, the equivalent of real currency is only treasury bonds.
Also, Fincen regulations only take affect at certain dollar amounts, if you feel you need to be concerned about them.
You can also try to get even further clarification from the Treasury yourself, because on this matter it doesn't matter what kind of legal counsel you ask, nobody knows all the semantics until an issue comes up that is actually decided in the courts.

1525: <p>As seen in recent news, FinCEN has issued a statement on its classification of virtual currencies: <a href="http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html">http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html</a></p>

<p>Hypothetically suppose I mine BTC and sell it on MtGox for USD. Do I need to register with FinCEN as a Money Transmitter(MT)? My interpretation of the above document indicates yes, I do; but I could also see MtGox (which is registered with FinCEN) maintaining my regulatory compliance, via proxy.</p>
 3429: <p>"A person that creates units of this convertible virtual currency and uses it to purchase real or virtual goods and services is a user of the convertible virtual currency and not subject to regulation as a money transmitter. By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter. In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."</p>

<p>A person is defined as this, even if they are an MSB:</p>

<p>"FinCEN’s regulations define “person” as “an individual, a corporation, a partnership, a trust or estate, a joint stock company, an association, a syndicate, joint venture, or other unincorporated organization or group, an Indian Tribe (as that term is defined in the Indian Gaming Regulatory Act), and all entities cognizable as legal personalities.” </p>

<p>So, yes, you have to register as a money transmitter if you sell your bitcoins after you have mined them. There is no designated threshold for money transmitters. </p>
 4724: <p>I think the case of mining as part of a pool is, in reality a very special case of providing a cloud based server farm service.   Essentially, those operating such a server farm are having its use contracted to the pool for an hourly (or shift) fee.   The fact that the payment for the service is done in bitcoin does not make the server farm operator a miner, nor do they actually create any currency.  </p>

<p>Even the pool itself is not creating a real currency, instead they are creating (or locating) a commodity which other people believe has a particular value.  This is no different than pumping oil out of the ground or mining for silver or gold.  No one would claim that a gold or silver miner or a farmer selling their crops is actually an MSB when they take their product to market would they? No, they are simply selling their commodity at the market price.  What difference does it make whether they use a drill, a tractor or a computer to prepare the commodity for the market?</p>

<p>That said, it will be interesting to see what happens if/when any of the assumptions here are challenged in a court case.  My supposition is that it will first happen with a true criminal enterprise (drugs or gangs for instance) since that will blur the distinctions and allow the case to set a supposed precedent and cause more confusion which is the best way to discourage general use by the under-educated majority.  </p>

<p>FMI on bitcoins as a commodity : <a href="http://blog.bitcointitan.com/post/17789738826/what-u-s-regulations-apply-to-bitcoins-as-commodities" rel="nofollow">http://blog.bitcointitan.com/post/17789738826/what-u-s-regulations-apply-to-bitcoins-as-commodities</a></p>
 1878: <p><strong>Maybe - check with a lawyer</strong></p>

<p>You don't have to register if</p>

<ul>
<li><p>You use a website (MtGox or Coinlab) to buy coins</p></li>
<li><p>You use coins to buy "stuff" (Namecheap, alpaca socks, etc)</p></li>
</ul>

<p>You might have to register if:</p>

<ul>
<li>You run a wallet hosting company</li>
</ul>

<p>The FINCen law requires people to register if they</p>

<ul>
<li><p>Are a mixing service</p></li>
<li><p>Participate in the <a href="http://bitcoin-otc.com/vieworderbook.php" rel="nofollow">Bitcoin OTC market</a> and issue one on one trades with people for cash (or cash substitute)</p></li>
<li><p>Run an online trading site (MtGox, or similar)</p></li>
</ul>

<p>I suspect the same requirements apply for Money Orders:</p>

<ul>
<li>Anyone who accepts Bitcoins for any software or service (<a href="http://www.fincen.gov/financial_institutions/msb/materials/en/prevention_guide.html" rel="nofollow">over $1,000</a>)</li>
</ul>

<p>However, I do understand your concern in this sentence:</p>

<blockquote>
  <p>By contrast, a person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is  engaged in transmission to another location and is a money transmitter</p>
</blockquote>

<p>So what does a Bitcoin miner <em>actually do</em>?</p>

<ul>
<li><p>It performs a service for the Bitcoin network and gets paid for it in the form of transaction fees.<br>
This value increases over time.</p></li>
<li><p>It is hardware that competes to solve a math problem and wins new coins for that block.<br>
This value decreases over time.</p></li>
</ul>

<p>Here is an example of a Miner that probably MUST register: A solo miner is configured to not broadcast Tx to other hosts. The miner accepts a Tx with a huge fee. This money substitute in exchange for a service is covered not by the FinCEN note in the OP's post, but <a href="http://www.fincen.gov/financial_institutions/msb/materials/en/prevention_guide.html" rel="nofollow">implied by this link.</a></p>

<p>I think it's a grey area that isn't well described, and we should look for more guidance.</p>

<p>Aside: </p>

<p>I don't like saying mining "creates units of this convertible virtual currency".  I think the actual creation occurred in 2009 when the Bitcoin Protocol was launched. I would argue that the protocol "creates" the coins, and USA based miners are just claiming them.</p>
 3047: <p>No, the fincen guidance you posted has it in plain english that you do not. A miner is simply a user.</p>

<pre><code> c. De-Centralized Virtual Currencies

        A final type of convertible virtual currency activity involves a 
de-centralized convertible virtual currency (1) that has no central 
repository and no single administrator, and (2) that persons may obtain 
by their own computing or manufacturing effort.

        A person that creates units of this convertible virtual currency and 
uses it to purchase real or virtual goods and services is a user of the 
convertible virtual currency and not subject to regulation as a money transmitter. 
By contrast, a person that creates units of convertible virtual currency and sells
those units to another person for real currency or its equivalent is 
engaged in transmission to another location and is a money transmitter....
</code></pre>

<p>On the exchange you are buying/selling bitcoins. The exchange carries the burden of giving you legal tender or a different cryptocurrency. The exchange carries the burden of regulation, according to the FinCen regulations. In the US, the equivalent of real currency is only treasury bonds.</p>

<p>Also, Fincen regulations only take affect at certain dollar amounts, if you feel you need to be concerned about them.</p>

<p>You can also try to get even further clarification from the Treasury yourself, because on this matter it doesn't matter what kind of legal counsel you ask, nobody knows all the semantics until an issue comes up that is actually decided in the courts.</p>
