Cryptocurrencies Introduced to the Definition of Money by Washington DPI
“Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government or other recognized medium of exchange.
The Department of Financial Institutions (DFI) of Washington has included the cryptographic currencies in the common definition of the term “Money”. The alternations can be observed in the Revised Code of Washington (RCW) tile 19, chapter 230 “Uniform money services act”, 010 Definitions or simply RCW 19.320 Definitions:
“(16) “Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government or other recognized medium of exchange. “Money” includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.”
The DFI also gives the definition of the alternative digital currencies in the press release:
“Virtual currency, also known as digital currency or crypto-currency, is a medium of exchange not authorized or adopted by a government. There are many different digital currencies being used over the internet, the most commonly known being Bitcoin.”
The idea is continued by the prescription for people, who are going to perform financial activities with Bitcoin and similar currencies:
“Companies wishing to transmit money for Washington residents in a digital currency form can contact DFI for a determination whether licensure under the UMSA is required. If it is, a license is required before the company can engage in the activity.”
Evaluating the official statement, it is necessary to mention that these alterations of the policy might have a bilateral effect. On the one hand, the introduction of regulation to the Bitcoin environment might support the companies and users operating the coin, assist in cases at the court and other controversial situations. On the other hand, there will be a new hurdle for startups and establishing of entrepreneurships as certificates and licenses will be required. Time and money will be spent to obtain all required documentation that might postpone solutions till undefined terms. Definitely this action might become an example for other states and jurisdictions.