The “Colorado Digital Token Act” Officially Comes into Effect: Things to Know for Crypto Assets Owners

According to Coin Telegraph, Colorado has recently passed a bill regarding cryptocurrencies. The bill dubbed, “Colorado Digital Token Act,” was made official on March 6, 2019, at exactly 2:32 PM (https://cointelegraph.com/news/us-state-of-colorado-passes-crypto-exemptions-bill-into-law).

Discussions on the act first surfaced in January. As per the claims made, there are certain limitations attached, which for the most part revolve around, “securities registration and traders,” reports Coin Telegraph. Additionally, it takes into account the necessary guidelines one must follow in obtaining licensing.

The state of Colorado seems to have a good idea as to what a digital asset is, as the bill defines it as being:

“A digital unit with specified characteristics, secured through a decentralized ledger or database, exchangeable for goods or services and capable of being traded or transferred between persons without an intermediary.”

This isn’t the first appearance of a crypto bill, as the state was introduced to a similar idea back in May, which at the time was rejected. The decision has supposedly dissatisfied many because of the persisting misunderstanding between tokens and securities.

Ultimately, Colorado’s move in bringing awareness on cryptocurrencies is a comforting preliminary point. In addition to the bill, it has been revealed that Colorado State University’s Water Institute was sought to study the implications of the blockchain.

To read the entire bill, refer to https://leg.colorado.gov/sites/default/files/2019a_023_signed.pdf