Alaska Mandates Crypto Firms to Acquire Money Transmission License
Alaska’s new directive mandates crypto firms to seek money transmission licenses starting January 1, 2023. The update confirms the inclusion of the phrase virtual currency within the money transmission regulations.
New License Requirements for Crypto Operators
A review of the new regulation on December 19 by Cooley law firm acknowledges the virtual currency definition following the amendment to the Alaska Administrative Code.
Cooley revealed that the Division of Banking and Securities (DBS) considers virtual currency a digital representation of value, store of value, and unit of account. However, it excludes it from money and denomination in money.
Beyond the definition of virtual currency, the amended law obliges parties involved in virtual currency to apply for licenses for executing money transmission services.
Legal Recognition of Virtual Currency in Alaska
The amendment extends virtual currency inclusion to permissible investments. Similar adjustments were made to the monetary value.
Nevertheless, Cooley’s review revealed the exclusion of online-based games, rewards, and digital tokens from the virtual currency classification.
According to Cooley, crypto firms operating within Alaska have proactively obtained the money transmission licenses before the amendment. It is critical to note the exclusion of digital currency within the existing limited licensing agreement. DBS has termed them obsolete from January 2023.
Zero Capital Tax Policy
The inclusion of virtual currency following the amendment to the Alaska laws projects the state as pro-crypto jurisdiction. Besides, Alaska is among the nine states that impose zero capital tax gains to attract investors.
In particular, it joined Nevada, Florida, Wyoming and South Dakota to scrap off capital tax gains. Such replicated the stance implemented by Washington, New Hampshire, Texas and Tennessee to avoid scaring investors with capital tax gains.
The recent review of the state’s achievement in crypto adoption portrays a contrasting outcome. The research indicated Alaska scored poorly in crypto uptake. In particular, the research ranked Alaska 36 of the 50 states participating in the study.
Alaska’s poor crypto uptake ranking suggests that amendments regulating digital assets hardly yield increased crypto adoption. However, the new amendments will trigger movements from the crypto firms operating within Alaska.
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