Virtual currency of Alaska
2022.12.21 04:52
Virtual currency of Alaska
Budrigannews.com – The term “virtual currency” will take its place in Alaska’s regulations for money transmission on January 1, 2023. Companies that deal in digital currencies will be required to obtain a money transmission license from the state as a result of this.
The law firm Cooley reported on December 19 that Alaska added a definition of “virtual currency” to its money transmission regulations. The virtual currency, as defined by the Division of Banking and Securities (DBS)-approved amendment to the local Administrative Code, is:
“[A] digital representation of value that is used as a medium of exchange, unit of account, or store of value; and is not money, whether or not denominated in money.”
The requirement to submit a licensing application for “a person engaging in money transmission activity involving virtual currency” is the change’s most obvious impact, which will take effect on January 1.
Virtual currency will be included in the “permissible investments” and “monetary value” definitions, according to other parts of the amendment. However, the Cooley analysis points out that online-gaming digital tokens, affinity and rewards programs, and so on still fall outside the definition of “virtual currency.”
Even prior to the amendment, crypto-related platforms were required to obtain an Alaska money transmission license. However, virtual currency was explicitly excluded from their previous Limited Licensing Agreement (LLA) with DBS. As a result, these LLAs will expire on January 1.
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Investors can still take advantage of the 0% capital gains tax in nine states, including Alaska. Washington, Wyoming, South Dakota, Nevada, Texas, Tennessee, and Florida are the other states. Despite this, it ranks only 36th out of 50 states in terms of crypto adoption, according to recent Invezz research.
