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A surety bond and fingerprints are just some of the proposed onerous requirements for Bitcoin and crypto businesses under a new lew waiting to be passed in Alaska.
Cryptocurrencies are in a gray zone when it comes to legislation in many parts of the world. In the United States, the situation can vary from state to state. Last year, North Carolina managed to pass a law that regulated Bitcoin and other cryptocurrencies but according to dcebrief.com, a similar attempt by Alaska did not meet success.
The House Bill 180, which is being considered by the state legislature in Alaska, would make it compulsory for certain businesses to obtain a money transmission license. The bill has been introduced by Alaskan representatives Zach Fansler and Sam Kito. Companies that engage in the business of transmission, storage or exchange of cryptocurrencies would fall under the purview of this law.
The proposed bill in the Alaskan legislature would make it binding for persons who apply for the money transmission license to fork over their fingerprints. The license applicant will also have to include all their personal history and experience. There is also a provision in the bill for the provision of security bonds by the applicant.
The proposed legislation in Alaska provides a definition of what virtual currencies are. This could take away some legal ambiguity surrounding Bitcoin and other virtual currencies. The bill states: “Virtual currency means a digital representation of value that does not have legal tender status in the United States but can be digitally traded and functions as a medium of exchange, a unit of account, a store of value; or is incorporated into payment system technology.” That definition also exempts cryptocurrency systems used only for loyalty rewards programs or those that are exclusively used within online gaming platforms.
While regulation may be necessary, it should not stifle business and innovation. Some of the measures in the proposed Alaskan legislation seem extreme on the outset. Having to complete burdensome licensing applications may not be something that small businesses are capable of doing with limited resources.
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