Utah To Exempt Blockchain Firms From Money Transmitter Act

| Publish date: 03/05/2019
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A lawmaker hailing from the U.S. state of Utah has recently introduced a bill that is expected to halt blockchain businesses from being classified as money transmitters. Also, the bill is meant to finally clarify terms related to the technology. Here is everything about it in a nutshell.

Defining SB-213

According to the official report, the Utah Senate Bill 213 is advocating the creation of a legislative task force specifically meant for blockchain technology. As far as the bill is concerned, the latter can be referred to as “an electronic method of storing data,” a process that is substantially maintained through multiple unaffiliated parties. These parties, on the other hand, are said to be distributed across various locations and, at the same time, mathematically verified.

It was Daniel Hemmert, a Republican senator, who filed the aforementioned bill. He proposes that any individual who facilities or helps in the creation, sale, or even exchange of some blockchain-related products should be exempted from Utah’s Money Transmitter Act.

Introducing the Legislative Group

As mentioned above, Senate Bill 213 is bound to form a legislative assembly known as the Blockchain Pilot Project Evaluation Task Force.” The goal is to study the very potential of blockchain technology and how it could significantly help in multiple government services.

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The task force, which is composed of 12 members, is expected to recommend a pilot project that will utilize the technology in Utah. It could be done either at a state or municipal level. From there, it is going to assess multiple commercial applications of the technology, especially when it is going to affect the state’s future when it comes to economic development.

Defining Money Transmission

The bill further suggests that money transmission does not necessarily include a blockchain token. Not only is it an electronic record that is recorded on the technology, but it also has the ability to be traded between individuals without the need to have an intermediary.

Money transmission, according to the bill, is known as the sale and/or issuance of a certain payment instrument. It could also refer to the engagement in the business of obtaining money intended for transmission. Lastly, it is even seen as the transmission of money within the country or to any other locations abroad that could be performed by any all means necessary. This includes, but not limited to, wire, payment instrument, electronic transfer, or facsimile.

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