Banking Law News

States Look to Define Cryptocurrency Activity for Payments Laws

Oct. 10, 2019, 4:29 PM

State regulators are asking for comment on harmonizing payments laws, including defining how virtual currency fits into exist payments frameworks.

The Conference of State Bank Supervisors on Oct. 10 issued proposed model legislation covering state money transmission rules and payments regulations. The goal is to streamline state definitions and laws for companies, particularly startups, seeking to more easily reach nationwide scale.

The proposal includes a recommendation for states to potentially add the phrase “conducting virtual currency activity” to the definition of money transmission.

Under the proposal, “virtually currency activity” would include exchanging, transferring or storing digital assets, regardless of whether...

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