April 21, 2019

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Newly Released Virtual-Currency Businesses Act Augurs Increased State Regulation of Bitcoin, Ether, and Other Digital and Crypto Currencies

On October 9, 2017, the Uniform Law Commission released the final version of its Uniform Regulation of Virtual-Currency Businesses Act (“VCBA”). The Act repeatedly references both state money transmission laws and Financial Crimes Enforcement Network money services business regulations, noting that the VCBA is intended to provide protections and obligations that are generally similar to those legal regimes.

K&L Gates has issued an alert about the VCBA, which can be found here. As discussed in the alert, the VCBA strives for clarity in defining what activities would require a license.  At the same time, it offers a long list of exemptions and provides for licensing alternatives, such as a “registration” option, for certain entities.  The VCBA also contains numerous provisions that attempt to avoid duplicative licensing regimes and to encourage cooperation among the states.

Of course, no state has yet adopted the VCBA, but we expect some states will do so, even if partially. Thus, it’s important to understand how the Act could affect your business.

Copyright 2019 K & L Gates

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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,...

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