7 Crypto-Friendly States In The US

The California legislature has since introduced Senate Bill 838. It defines virtual currency as any digital representation of value that serves as a medium of exchange. Again it’s a form of digitally stored value. It integrates into a payment system technology. The definition is quite comprehensive and covers most in-use cryptocurrencies.

Delaware

Delaware continues to woo companies wishing to incorporate their businesses in the state. It has favorable business policies. Among the firms it’s attracting includes those that use cryptocurrency as a part of their operations. Delaware incorporates more than half of the Fortune 500 companies.

In 2017, the state passed distributed ledger technology (DLT) and smart contracts law. The law aimed to encourage fledgling crypto businesses to incorporate their businesses. The new initiative is welcoming DLT businesses. It has also opened the state to use blockchain technologies in government operations. Delaware has a law allowing companies to use BC for recording stockholder information. The information includes stock votes, stock name changes, and issued shares.

The new legislation also legalized securities registration on DLT platforms. Further, it prohibits any fraudulent or deceptive sale of stock or securities.

Delaware was also one of the first states to pass legislation on ICOs. Its “Token Taxation Act” came into effect last May. The act exempts token issuers from paying income taxes. That said, those tokens shouldn’t qualify as securities under US laws.

Wyoming

The state of Wyoming has taken steps to endear itself to crypto entrepreneurs. First off, you don’t need any special licenses to operate a crypto-related business. Second, it offers tax breaks to companies using BC technology.

Wyoming also welcomes crypto businesses, but only if they follow certain conditions. For example, companies need to register themselves before starting operations. They must also get a money transmitter license from FinCEN. Finally, they have to get approval from the Office of the Commissioner of Securities.

The state was the first to pass laws recognizing BC records as legal evidence. They took effect in March 2018 following Governor Matt Mead’s accent. It also passed a bill providing tax breaks and incentives for businesses in BC. The move was to help boost economic growth. It seeks to create an environment friendly to developing DLTs and create wide-ranging legislation covering blockchain record keeping. Moreover, it also covers personal data ownership rights and exemption from securities registration.

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Disclaimer: The Content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing ...

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