Forbes is reporting that banks are refusing to open accounts for some startups related to Bitcoin, the alternative (not backed by a state) currency gaining popularity (and value) for online transactions, including those involving some businesses.

Quote:

“Bitcoins are not illegal in and of themselves and have known legitimate uses,” said an FBI criminal complaint when it shut down online drug bazaar Silk Road, and seized its holdings: nearly 500,000 Bitcoins or $30 million at the coin’s current valuation. (The FBI plans to sell them after judicial proceedings are over.) Guidance from the IRS, Department of Treasury and SEC has all established that Bitcoins are legal, and that those dealing with them must simply follow existing tax and anti-money-laundering regulation, yet banks remain wary of the disruptive digital currency. There are regulatory uncertainties, the major one being whether or not Bitcoin exchanges need to get a money-transmitting license for every state, a laborious and expensive process. “Regulators are worried they won’t be able to protect consumers, that the systems aren’t trustworthy, and that they can’t prevent money-laundering,” says Adam Shapiro, a regulatory expert at Promontory Financial Group, LLC. New York’s state financial regulator subpoenaed 22 Bitcoin investors and companies in August expressing concerns about consumer protection. In November, an exchange in Hong Kong shut down overnight, taking $4 million in investors’ accounts with it, a nightmare from a consumer protection standpoint.

Full Story: Bitcoin Companies and Entrepreneurs Can’t Get Bank Accounts (Forbes.com)