In the not too distant past, anti-regulation bitcoiner Theo Chino sent a letter to the Uniform Law Commission (ULC), urging the group not to meddle in cryptocurrency just yet. Welp, it appears the panel didn’t heed his advice, because the legislative review body recently green lit the Uniform Regulation of Virtual Currency Business Act.
First things First: What Is The ULC?
Mainly, the ULC creates state law templates to ensure federal compliance and a degree of — albeit, mutable — national legislative conformity.
Yes, states do enjoy significant legislative autonomy, but they’re still beholden to federal statutes. And yes, laws differ by state, but a certain degree of statutory continuity helps maintain a healthy market and social stability, nationwide. That’s where the ULC comes into play; the group drafts “ideal” pieces of legislation that comply with federal parameters. States can then choose — or not choose — to run proposals through the ratification process and tweak measures to best fit their respective jurisdictions.
The Uniform Regulation of Virtual Currency Business Act
The Uniform Regulation of Virtual Currency Business Act is a piece of draft legislation that addresses licensing requirements, reciprocity, consumer protection, cyber security, money laundering prevention, and supervision of bitcoins, ether, and other tokens.
A long time in the making, the ULC has been working on the draft for two years. And perhaps a boon for fintech companies, Coin Center, a virtual currency trade group, worked closely with commissioners during the process.
When Will The Uniform Regulation of Virtual Currency Business Act Go Into Effect?
Since the ULC is not a governing body, the Act may never see the light of day in certain states. Some states may choose to adopt it; other states may tweak parts or refuse to adopt the measure. But before it’s even presented to states for consideration, the American Bar Associations House of Delegates must first scrutinize and approve it.
Connect With A Cryptocurrency Lawyer
Kelly / Warner works with businesses in the fintech and cryptocurrency space.
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Want to read more about Bitcoin and altcoin legalities? Please head to the virtual currency section of our blog.
Cummings, D. (2017, July 20). ULC Approves Proposal For The Regulation Of Virtual Currency Businesses. Retrieved September 25, 2017, from https://www.ethnews.com/ulc-approves-proposal-for-the-regulation-of-virtual-currency-businesses
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