Home » Cash, Card, or Crypto? – Florida’s License Requirement for Crypto Currency | Butler Snow LLP

Cash, Card, or Crypto? – Florida’s License Requirement for Crypto Currency | Butler Snow LLP

by admin
Butler Snow LLP

Cash currencies have dominated the business of monetary rewards since recorded history. Since the 1950s, Cash has met one of his most formidable competitors: the credit card. Piggybacking on the idea of ​​digital currency, debit cards emerged in the 1970s, allowing you to access all your funds and exchange currency with the swipe of a plastic rectangle. Credit and debit cards reigned as champions of digital currency for almost four decades until the rise of new competitors, cryptocurrencies.

Since the introduction of Bitcoin, the use of cryptocurrencies has exploded. People have consistently increased the value of cryptocurrencies by creating a high-value marketplace for their use and opening up more channels that allow the currency to be traded among those who own it. The use of currency has progressed from local exchanges between individuals to some companies strictly using cryptocurrencies to participate in contract negotiations and currency exchanges.

So what happens when cryptocurrencies become dominant to the point where there seems to be no return? Regulated by the state of Florida. Florida he enacted legislation beginning January 1, 2023 that would impose licensing requirements on transmitters when trading businesses that include what the Sunshine State considers “virtual currencies,” although this licensing requirement is specific to Applies to transmitters only. In HB 273, the Florida Legislature defines virtual currency as “an electronic or digital medium of exchange that is not currency.” Excluded from this definition are online platforms that have their own identified form of currency that cannot be exchanged outside of that platform (i.e. online video games that have their own form of “currency” given for purchase throughout the game). ) am. The law also appears to exclude rewards program points that are strictly redeemable with publishers that offer reward points, unless the points can be “converted or exchanged for currency or another medium of exchange.” In other words, the license requirement only applies to cryptocurrency exchanges that involve third-party intermediaries for currency conversion.

While this law may appear intimidating and restrictive at first glance, the legislature’s intentions actually reveal the opposite. Instead, Florida intends to reduce the potential for money laundering using “virtual currencies” popular in commerce. , must hold the same type of virtual currency and exact amount sent to the currency recipient until the transmission is complete.

What should I do

For businesses with transactions involving cryptocurrencies and third-party senders, the key to avoiding violating this Florida law is to ensure that intermediaries sending the currency meet licensing requirements. am. License requirements include a minimum of $100,000, corporate-guaranteed bonds, and permissible investments. Failure to comply with licensing requirements, if applicable to transmitters, may subject you to the Florida Criminal Money Laundering Laws.

Related Posts

Leave a Comment