Is Bitcoin legal in the US? Well, it depends on the state. Today, we discuss the USA Cryptocurrency regulation specifics in 5 major US states. With cryptocurrency trend on the rise, more and more authorities prefer to regulate the virtual currency.
USA Cryptocurrency regulation
Today, we will discuss the legal status of digital currencies in some of the US states: Washington, Illinois, Hawaii, California, and Florida. Specifically, we will go over the details of the states' frameworks that contribute to USA cryptocurrency regulation.
Washington cryptocurrency regulation
Washington authorities have commenced creating new rules that involve Bitcoin transactions. Specifically, businesses that are operating in digital currency services sector, will need to follow the new framework.
In fact, the Senate Bill 5013 is featuring the definition of cryptocurrency. It also includes a number of disclosure agreements on consumer information. The upcoming law will oblige online currency exchanges in Washington to maintain a surety bond.
The officials have introduced the bill in January. Presently, it is ready to be reviewed by the Governor Jay Inslee. Some industry observers believe that the officials will favor the new bill. In spite of this regulation developments, some of the cryptocurrency related startups are hesitant about operating in this state.
Illinois cryptocurrency regulation
The Secretary Bryan A. Schneider of the Illinois Department of Financial and Professional Regulation (IDFPR) has announced the new initiative in regards to the cryptocurrency regulations. The initiative is called Digital Currency Regulatory Guidance.
Specifically, it is focusing on the digital currencies like Bitcoin, Dogecoin, Litecoin, Ethereum, and ZCash. This framework has improved the regulation of myriad digital currencies related activities. Moreover, market observers expect IDFPR to carry on delivering the support for the BlockChain technology in the state.
Hawaii cryptocurrency regulation
Coinbase has announced that it is ceasing offering support for its clients in the state of Hawaii. The reason being is the ‘impractical’ regulatory policies that are applicable to Bitcoin in this state.
At the moment, Hawaii authorities are considering a bill that would create a group for analyzing cryptocurrencies and Blockchain technology. Following this news, Coinbase might re-establish working with regulators.
California cryptocurrency regulation
Recently, California officials have proposed the Assembly Bill 1123. The bill would enact the Virtual Currency Act. The latter is aiming to prevent a person from engaging in digital currency business activities unless he/she is officially licensed by the Commissioner of Business Oversight or exempted from the requirement.
Florida cryptocurrency regulation
With Florida House Bill 1379 passing, state residents are getting aware of the definition of digital currency. The bill is also aiming to regulate and ban the use of cryptocurrency for money laundering. Additionally, the bill now is awaiting the review by Florida’s governor.
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