The ruling is an outlier driven by its unique facts and is unlikely to change the general regulatory landscape for Bitcoin businesses.

In State of Florida v. Espinoza, a trial court in Miami recently dismissed all charges against an individual Bitcoin exchanger, who was arrested in a sting operation after agreeing to sell bitcoins to an undercover detective who purported to need them to buy stolen credit cards.1 The court’s decision, which is now being appealed by the prosecution, includes several notable holdings. In dismissing charges that the defendant had operated a money transmitting business without a license, the court held that bitcoins are not “money,” that selling bitcoins is not money “transmitting,” and that selling bitcoins without charging transaction fees does not involve the operation of a money transmitting “business.” Separately, in dismissing money laundering charges against the defendant, the court found that merely selling bitcoins to someone who plans to use them for a criminal purpose — even if that criminal purpose is evident at the time of the sale — is not a sufficient basis for a money laundering charge.