Colorado Division Of Banking Releases Guidelines For Crypto Regulation

This Thursday, the Colorado Division of Banking issued interpretive guidance discussing the applicability of the Colorado Money Transmitters Act to cryptocurrency companies. The guidance is the outcome of many months of coordination between the Division of Banking and the Colorado Attorney General’s office and is a significant and desired step forward for crypto companies striving to navigate the current regulatory uncertainty encompassing the industry.

The issued guideline presents a clear and specific narrative that crypto companies can use in assessing their operations and determining whether a money transmission license is necessary for operations in the State of Colorado.

According to the guidance, a money transmission license is necessary for Colorado when:

  • A person is engaged in the business of selling and buying cryptocurrencies for fiat currency; and
  • A Colorado customer can transfer cryptocurrency to another customer within the exchange; and
  • The exchange has the ability to transfer fiat currency through the medium of cryptocurrency.

The direction governs the specific circumstances under which Colorado law will require a crypto exchange to have a money transmission license. The guidance makes it clear that if no fiat currency is involved in the transactions, the state’s money transmission law is not implicated.

Additionally, the guidance asserts that aiding direct transfers of cryptocurrency from one user to another user does not require a license.

With this guidance, Colorado joins Wyoming as one of the best US jurisdictions for blockchain technology. Steps like these will help states like Colorado draw companies and pioneer a new digital economy. Surely, this collaborative and cooperative strategy can be an example to other regulatory agencies in addressing these issues.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide