In an bill proposed Wednesday, Alaska outlines bitcoin and other virtual currency regulation with great detail. Perhaps the most detailed amendment we've seen aside from the New York "Bitlicense".

The states who have passed specific regulation on virtual currency have broadly amended current statutes, with the exception of New York who created an entire new virtual currency license (Bitlicense).

Alaska's proposal isn't vague, hard to understand, or broad beyond clarity. It's specific, detailed, and covers how Alaska would regulate bitcoin and other virtual currencies with great specificity.

The bill, HB180, has amendment Sec. 06.55.855. that define virtual currency as:

Virtual currency. In this chapter, a reference to virtual currency shall be broadly construed to cover digital units of exchange that
(1) have a centralized repository; in this paragraph, "centralized repository" means a single third-party administrating authority that controls the system, issues the currency, establishes the rules for the currency's use, maintains a
central payment ledger, and has authority to redeem the currency or withdraw the currency from circulation;
(2) are decentralized, distributive, open-source, math-based, peer-to-peer virtual currency with no central administrating authority and no central monitoring or oversight; in this paragraph,
(A) "distributive" means validated through distribution among a network of participants who run an algorithm to validate the transaction;
(B) "open-source" means available through software that can be downloaded for free from an Internet website to send, receive, and store virtual currency; or
(3) may be created or obtained by computing or manufacturing effort. 

Repealed and re-enacted Section 58. AS 06.55.990(15) now includes the term "virtual currency" under what constitutes "money transmission":

(15) "money transmission" means ...
(C) conducting the following types of activity in this state or involving a resident of this state:
(i) receiving virtual currency for transmission;
(ii) transmitting virtual currency;
(iii) securing, storing, holding, or maintaining custody or control of virtual currency on behalf of others;
(iv) buying and selling virtual currency as or through a third party;
(v) performing retail conversion services, including the conversion or exchange of fiat currency or other value into virtual currency, the conversion or exchange of virtual currency into fiat currency or other value, or the conversion or exchange of one form of
virtual currency into another form of virtual currency; or
(vi) controlling, administering, or issuing virtual

Alaska seems to be taking the New York side of the NY/TX divide where New York is for heavy regulation and Texas is for more realistic regulation of virtual currency. Up until yesterday Alaska was a gray area, but it is now clear what regulators hope to accomplish.

Article by dinbits
Image Credits:
Banner Image by staff

The opinions expressed by authors of articles linked, referenced, or published on do not necessarily express, nor are endorsed by, the opinions the of or its affiliates.

Post a Comment

Powered by Blogger.