A Look at the Upcoming US Uniform Regulation of Virtual Currencies Business Act

According to reports, some proposed U.S. legislative framework for virtual currencies will be presented in San Diego sometime between July 14-20. The “Uniform Regulation of Virtual Currencies Business Act” was drafted by the Uniform Law Commission (ULC), a nonprofit that tries to establish a statutory law across many jurisdictions and states.

Also Read: Scheduled Scaling Updates for the Bitcoin Network Are Getting Closer

ULC’s Virtual Currency Committee Framework May Not Be Good for Bitcoin

The man who is currently fighting the New York state financial services department has reported that a new virtual currency act will be revealed to the public soon. Theo Chino has been battling the New York Bitlicense for quite some time and talked with the ULC’s Virtual Currency Committee about the new legislative framework. Chino thinks the new act will not be good for bitcoin-based businesses and he believes the committee doesn’t really understand how the technology works.     

“The last conversation led me to believe that he did not care about the academic research on the true nature of Bitcoin but was more interested in his personal notoriety as the chair of the committee,” explains Chino’s announcement.

He did not know how the technology really worked and why the act is bad.

The Absence of Federal Payments Regulation

The committees “Regulation of Virtual Currency Businesses Act” has been crafted because there is an “absence of an overarching federal payments regulatory framework,” says the ULC. The drafting committee believes there is a need for creating standardized state legislation on the regulation of virtual currencies. This includes examining “the issues such as licensing requirements; reciprocity; consumer protection; cyber security; anti-money laundering; and supervision of licensees,” explains the act’s preface.

The ULC’s preliminary draft says the purpose of the act is to create a statutory structure for virtual currency business activities alongside individuals offering services to citizens of U.S. states. Activities include services that fall under the umbrella of “money transmitters” or “money services.” The act will require these businesses and individuals to apply for licensure if their services fall under these three categories;   

1. The exchange of virtual currencies for cash, bank deposits, or other virtual currencies;
2. The transfer from one customer to another person of virtual currencies; or
3. Certain custodial or fiduciary services in which the property or assets under the custodian’s control or under management include property or assets recognized as “virtual currency.”

Chino Believes Bitcoiners Should Stop the ULC Act Before It Gains Traction

Bitcoin proponents are advised by Chino to call Richard Cassidy of Vermont to stop the act before its too late.

Theo Chino says the new act should be fought before it starts gaining traction. Chino says bitcoiners can contact the Chairperson of the ULC, Richard Cassidy of Vermont and ask him not to present the virtual currency framework. Furthermore, Chino details U.S. citizens can fight the bill with each assembly in all fifty states, alongside trying to stop it before the ULC pushes it forward.

As Chino revealed the news about the ULC’s current plans, the New York resident has also detailed more information about his solo fight against his state’s Bitlicense. “The Attorney General of the State of New York filed his motion to dismiss Friday night — There will be a hearing on August 31st, 2017,” Chino adds.

The ULC’s drafted framework follows the many attempts by U.S. officials this year trying to regulate the decentralized currency. Information on contacting the ULC Chairperson Richard Cassidy can be found here if our readers would like to help Chino fight this proposed legislation.

What do you think about the Uniform Regulation of Virtual Currencies Business Act? Let us know in the comments below.

Images via Shutterstock, Wiki, and the ULC. 

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