The Bank Secrecy Act of 1970 is facing the threat of becoming unable to cope with virtual economic transactions. The rise to prominence of virtual worlds and virtual currencies in the last decade has resulted in a move by financial criminals to conduct money-laundering operations on the Internet. One such virtual currency, Bitcoin, operates as a decentralized unit of exchange with a set exchange rate to real world currencies based on supply and demand. However, existing regulations set out by the Bank Secrecy Act do not address virtual economies, leaving the burgeoning e-commerce sector in a legal grey area. Consequently, law enforcement has become increasingly aware of the threat posed by criminals who use Bitcoin and other virtual currencies to launder money outside the scope of the existing law. This Comment explores the legal history of the Bank Secrecy Act and its relevance with the growth of the virtual currency, Bitcoin. Furthermore, this Comment seeks to demonstrate the relative ease of using Bitcoin to launder money under existing regulations in comparison to traditional money laundering through a bank. In light of these loopholes, this Comment seeks to make recommendations as to ways the virtual currency legal loophole can be fixed.