Given the widespread demand for virtual currencies around the world, the government’s say on these terms still goes on its legalities within the platform. As a way to defend the local businesses of crypto and blockchain, a state in the USA– which is Utah, recently introduced an interesting method to help and uplift the increasing industry of cryptocurrencies.
Utah Bill That Exempts Crypto To Money Transmission Laws
On March 1, Senate Bill 213 or the Blockchain Technology Act, sponsored by one of Utah’s Republican legislator Daniel Hemmert, discusses the evident problem experienced by most American crypto businessmen– the money transmission laws.
Since the law requires all business entities that provide money transfer services or payment instruments to be having licenses given by the US government, the idea of Hemmert to exclude crypto-related and blockchain-related businesses on this law gives light to the freedom that the industry wanted from each government.
Senate Bill 213 Or the Blockchain Technology Act
Interestingly, the bill highlighted its conditions when it comes to excluding virtual currencies. First, the bill “defines and clarifies terms related to blockchain technology.” Secondly, it aims to “exempts a person who facilitates the creation, exchange, or sale of certain blockchain technology-related products from Money Transmitter Act and lastly, it allows the government of Utah to appoint a legislative task force– that studies and reviews the ‘potential applications of blockchain technology to government services.’
According to the proposed bill, the “Money transmission” does not include a blockchain token which further explains that cryptocurrencies cannot have the same treatment with other money transmitter entities since it takes place using the medium of the internet which allows the transfer around the globe.
Not a Right, But a Privilege
Just like the explanation of Marco Santori in Coindesk, “A money transmission license is not a right, but a privilege. Whether any particular state will consider a business worthy of such a privilege depends entirely on the state in question. This makes tricky business of planning a nationwide rollout.”
Different Stands On The Law
Once the proposed bill made its way to the appropriate committees and got passed, the state will share the same laws with other US states like Pennsylvania, New Hampshire, Illinois, and Texas– where crypto and blockchain were also exempted from the government’s money transmitter laws.
Unlike these, a lot of US states still considered crypto and blockchain as money transmitters in where they were required to provide licenses with each business. States like North Carolina, Oregon, and New York– which has BitLicense to regulate the businesses– charged the firms with the said law.
Even this law is still being discussed under debates, the action of Hemmert to give more freedom in the industry of crypto through his bill had an impact in the market– whether for good or bad.