August 9, 2022

Volume XII, Number 221

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August 08, 2022

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Louisiana Proposes Administrative Rules For Virtual Currency Businesses

The Louisiana Office for Financial Institutions (“OFI”) has proposed administrative rules governing the licensing process for virtual currency businesses. Louisiana’s Virtual Currency Business Act (the “Act”) became effective in August 2020 and granted OFI broad supervisory and enforcement powers.  The Act also required OFI to promulgate rules regarding licensing.  Roughly two years later, OFI has done so. Those wishing to submit written comments on the proposed rules may do so through 5:00 pm on July 10, 2022.  It’s expected the rules will be adopted later this year.

Broadly, the rules cover the registration, regulation, and maintenance of licensure for businesses subject to the Act. This includes fees for registration, duties of virtual currency businesses to allow the OFI to effectively supervise, examination and reporting protocols, and penalties for violations.  The proposed rules also provide some helpful definitions to undefined terms in the Act, as well as expanding the definitions of some terms. Licensing and renewals will be handled through the National Mortgage Licensing System (“NMLS”), which is a welcome feature for those already familiar with the system.

For businesses looking to register under the Act, fees are at least $5,750 ($5,000 application fee + $750 registration fee), while those already licensed must pay at least $4,500 ($4,000 application fee + $500 registration fee) to renew the license.

Copyright 2022 K & L GatesNational Law Review, Volume XII, Number 188
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About this Author

Associate

Jeremy McLaughlin is an associate in the firm’s San Francisco office and a member of the Consumer Financial Service group. His practice focuses principally on regulatory compliance and government enforcement for Fintech and consumer financial products and services, with particular attention on emerging payments and compliance with state and federal consumer protection laws, state money transmitter licensing laws, and international remittances, as well as advising on privacy, data security, and PCI compliance. He represents and advises financial technology companies,...

415-882-8230
Christian A. Zazzali Litigation Lawyer K&L gates
Associate

Christian Zazzali is an associate in the firm’s Newark office. He is a member of the Complex Commercial Litigation and Disputes practice group. Prior to joining the firm Christian served as a legal intern for a law office in New Jersey. Through this role, Christian researched and drafted memoranda, briefs, and motions on wide range of civil disputes, including sexual assault claims against public schools. Christian also co-founded a digital assets holdings company focused on decentralized finance solutions and non-fungible token management. 

+1.973-848-4178
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