NH Legislators Seek Money Transmission Exemption for Bitcoin Startups
Legislators in New Hampshire have filed a new bill that aims to clarify rules around digital currencies and money transmitters. HB 436, filed on 12th January, seeks to add a formal definition for "virtual currency" to the state’s laws, as well as create an exception from money transmission requirements for "persons conducting business using transactions conducted in whole or in part in virtual currency". The bill would also add a clause to the definition of a digital currency money transmitter, a designation which, if passed, would include "maintaining control of....
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What is rather intriguing about this proposal is the proposed definition of virtual currency. Regulating companies active in the bitcoin world have proven to be quite challenging. In most cases, bitcoin startups dealing with customer deposits are labeled as money transmitters. New Hampshire legislators are now seeking an exemption for bitcoin startups through the HB 436 proposal. It remains unclear if their proposal will be approved, as it will set an intriguing precedent for other US states. Under the HB 436 proposal, New Hampshire regulators want to add a formal definition for bitcoin to....
California’s AB 786, a piece of legislation that will make doing in-state business easier for Bitcoin startups, passed in early September. This amends California Money Transmission Act with a couple of key points: Businesses that pay their employees’ salaries in Bitcoin might qualify for a payroll exemption. Minimum capital requirements are reduced for a Bitcoin startup that operates in the payments or remittance markets. The MTA initially imposed strict requirements on California-based business classified as money transmitters, and these are enforced by the Department of Business....
The State of California has passed legislation that should make it easier for bitcoin startups to do business in the state. AB 786, passed in the house last week, amends the California Money Transmission Act with some key provisions. The state's original Money Transmission Act (MTA) classified certain companies doing business in California as money transmitters, imposing stringent requirements on them before they could do business in the state. This legislation is enforced by the Department of Business Oversight (DBO), part of which until July 1 was known as the Department of Financial....
The Texas Department of Banking on Thursday released a supervisory memorandum on the topic of virtual currencies, chief of which include bitcoin. The five-page document serves to outline the Texas Department of Banking's policies toward virtual currency and express the Department's interpretation of the Texas Money Services Act with reference to virtual currency. The memo makes note of the following (condensed for the sake of brevity):"Exchange of cryptocurrency for sovereign currency between two parties is not money transmission." "Exchange of one cryptocurrency for another cryptocurrency....
A digital currency bill has been proposed and amended in the state of California, easing the burden for bitcoin startups. The initial proposal required individuals and companies offering services that involve bitcoin or other digital currencies to first obtain a license. However, this could wind up stifling innovation and being too costly for bitcoin startups. With that, the revised version enables small-scale business concepts to receive conditional approval from the state's Commission of Business Oversight under the state's Money Transmission Act. Lower Burden on Bitcoin Startups.