Monday, April 15, 2024
Blockchain

Virtual money is regulated in Alaska

In accordance with Alaska’s legislation governing the transfer of money, the phrase “virtual currency” will be implemented on January 1, 2023.

Companies that deal in virtual currencies will be required to get a money transmission license in the state if this bill is passed.

To be able to do business in the state involving cryptocurrency, the enterprises will need to get a new kind of license.

As stated in a report published on December 19 by the legal firm Cooley, the state of Alaska recently modified its legislation governing the transfer of money to include a description of virtual currency.

A person who engages in money transmission activities involving virtual currency will be required to submit an application for a license, as stipulated by an amendment to the local Administrative Code that was adopted by the Division of Banking and Securities (DBS). This change will become effective on January 1, 2018. The most obvious impact of this change is that it will require a person to submit an application for a license.

The concept of monetary value and the types of investments that are allowed under the amendment will be expanded to include virtual currency, in accordance with other provisions of the amendment.

However, based on the findings of the Cooley investigation, loyalty and rewards programs, in addition to the digital tokens used in online gaming, continue to be excluded from the category of virtual money.

Even before the amendment was passed, platforms dealing with cryptocurrencies were required to get a money transmission license in the state of Alaska.

However, a prior version of their Limited Licensing Agreement (LLA) with DBS expressly did not include the concept of virtual money.

As a result, these LLAs will no longer be valid as of January 1st.

Alaska is one of just nine jurisdictions that continue to provide investors with the option of paying no tax on capital gains.

The remaining states are Wyoming, South Dakota, New Hampshire, Nevada, Texas, Tennessee, and Florida. Washington, Wyoming, and South Dakota are also included.

However, the most recent analysis carried out by Invezz places it just 36th out of the 50 states in terms of the acceptance of cryptocurrencies.

 

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