Blockchain News

Bill seeks to exempt Blockchain businesses from being classed as money transmitters

Daniel Hemmert, a lawmaker from the state of Utah, has introduced a bill that aims to stop Blockchain businesses from being classed as money transmitters.

The Republican senator filled the Senate Bill 213 last week that proposes that any person who facilitates the creation, exchange and sale of any blockchain related products should be exempted from Utah’s Money Transmitter Act.

The bill also reveals a plan to create a legislative group known as the “Blockchain Pilot Project Evaluation Task Force” that will study the potential of the blockchain technology when it comes to government services.

The task force will consist of 12 members and will recommend a pilot blockchain project in Utah at a state level or municipal level. It will also examine the commercial applications of the technology for the future economic development of the state.

The task force is set to prepare a report that will include any proposed legislation to the Business and Labour Interim Committee and Legislative Management Committee by November 30 of this year.

Now it seems Utah isn’t the only state that seeks to exempt Blockchain businesses from being classed as money transmitters. The state of Pennsylvania has already clarified that cryptocurrency exchanges do not need a money transmission license to conduct business in the state starting January this year.

A statement also published by the Pennsylvania Department of Banking and Securities (DoBS) noted that even other businesses operating within the sector like crypto kiosks, ATMs and vending machines were also not classified as money transmitters.

“In both the one-way and two-way Kiosk systems, there is no transfer of money to any third party. The user of the Kiosk merely exchanges fiat currency for virtual currency and vice versa, and there is no money transmission.”

What’s your take on this bill that seeks to exempt Blockchain businesses in Utah from being classed as money transmitters? Share your thoughts in the comment section below.

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coinmag

Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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