Article is provided by Jennifer L. Moffitt, a privately practicing attorney. Contacts can be found at the end of the post.
In the United States, virtual currency, such as Bitcoin and other similar coins, and virtual currency exchanges have been subject to federal regulations, with taxation and financial crimes the most prominent regulatory issues. However, it is at the state level that regulation of virtual currency has been most contradictory. The U.S. states have mixed responses to the emergence of cryptocurrency. Some of the states have ignored cryptocurrency by not implementing or amending any laws that address virtual currency. However, other states have taken action with some states somewhat hostile towards virtual currency while other states are more welcoming. In a number of states, the response towards cryptocurrency is currently ambiguous with no actual position taken. This discussion will attempt to categorize regulations by restrictions placed on virtual currency and identify states by category of regulation. In addition, the implications and effects of widely divergent state level legislation and regulations will be examined.
State Level Cryptocurrency Regulatory Tools
There are several regulatory tools used by states to regulate and control virtual currency. These include money transmission laws, licensing requirements and regulatory guidance. A brief summary of these tools is provided below.
In the following video from the Bitcoin meetup held on 1 May 2017 in Zurich, Zach & Josh Harvey, Co-Founders of Lamassu talk about their company, why they started a Bitcoin business and what it’s like.
Lamassu Inc. is one of the first bitcoin ATM producers and oldest Bitcoin companies still operating today. Their Bitcoin machines are among the most popular (top 3 manufacturer list), with almost 400 machines deployed all over the world.
In June the price of Bitcoin followed the trend form May and continued to move in the downward trajectory. At the beginning of the month, the price was $7,535. It continued to fall, even reaching the lowest value in this year at $5,909 on 29th June ended at $6,381, which is a 15,3% fall since the beginning of the month.
Unlike the price downward trajectory, the number of new machines continued to grow.
Period Start: 3177, Period End: 3399
Opened: 282, Closed: 60, Net Growth: +222(+7.0%)
Unlike the prices that fluctuate since beginning of year, the number of new machines continues to follow a steady increase. This trend continues in June.
Since launch of Bitcoin in 2009 cryptocurrencies gain more and more traction every year. Many people hear and research cryptocurrencies when next boom happens and price grows rapidly. Significant number of people already hold cryptocurrencies, even more plan to hold in the future.
Disclaimer: This article is not a financial advice to invest in cryptocurrencies. Reader needs to conduct own research before purchasing any amount of cryptocurrencies and understand the risks associated with it.