The State of Alaska has introduced a bill this week defining digital currency, as well as broadening its definition of money transmission to include it. A wide array of business functions would require money transmission licenses, including buying and selling through a third party, transmitting, controlling, and issuing digital currencies.
Also read: Bitfinex Will Not Obtain License to Do Business in Washington State
Introduced by representatives Zach Fansler and Sam Kito III, Alaska State House Bill No. 180 outlines a large number of amendments to the state’s existing money transmission laws which were enforced on July 1, 2008.
Currently, the Alaskan statutes declare that a person wanting to engage in the business of money transmission in any way, including advertising and soliciting for this service, must hold a money transmission license or become an authorized delegate of a person who holds a money transmission license.Defining ‘Virtual Currency’
Digital currency is not currently defined or included in the state’s existing money transmission statutes. This new bill adds a definition for digital currency including bitcoin but refers to them as ‘virtual currency’. According to the bill, virtual currency “shall be broadly construed to cover digital units of exchange” that:
1. Have a centralized repository, which it defines as “a single third-party administrating authority that controls the system, issues the currency, establishes the rules for the currency’s use, mainta...