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Utah Lawmakers Sponsor Bill to Exclude Cryptocurrency Transactions from Money Transmission Laws

Utah Lawmakers Sponsor Bill to Exclude Cryptocurrency Transactions from Money Transmission Laws

A Utah state senator has introduced a bill that could exempt cryptocurrency and blockchain technology-focused businesses from the state’s money transmission laws. If passed, Utah would become the next after Pennsylvania and New Hampshire to classify virtual currency businesses outside the ambit of money transmission regulations.

Utah: The Next Cryptocurrency Friendly Destination in the U.S.?

On March 1, 2019, Daniel Hemmert, a Republican member of the Utah Senate, introduced Senate Bill 213.

The bill seeks to provide an exemption for cryptocurrency token issuers and exchanges from being classified as money transmitters. The proposed legislation also looks to create a clear framework upon which future regulations could be built.

Thus, the bill asks for the creation of a 12-man “Blockchain Pilot Project Evaluation Task Force” that would oversee the study of the cryptocurrency and blockchain technology landscape.

According to the proposed bill, the task force will examine the various ways in which the emerging technology could be of benefit to the state. Also, the team will develop preliminary rules and regulations for consideration by appropriate committees in the state legislature.

If passed, Utah will join the likes of Pennsylvania and New Hampshire in exempting cryptocurrency exchanges and token issuers from money transmission laws.

Wyoming also recently introduced and passed into law, several cryptocurrency-focused bills. One such bill exempts cryptocurrency tokens from both securities and money transmission laws.

Money Transmission Laws and the Emerging Digital Economy

In the absence of federal cryptocurrency regulations, different states in the U.S. continue to develop their virtual currency and blockchain technology laws. Thus, businesses are forced to navigate a patchwork of state regulations as part of th...

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