The regulation for Blockchain banks based in Wyoming has been updated to cover a larger scope in the digital currency space. This news was unveiled at the Fordham Law Blockchain Regulatory Symposium held in NYC this week.
Caitlin Long, the President of Wyoming’s Blockchain Task Force, posted on her twitter handle applauding the move as a pacesetter for other stakeholders. The new regulations will cover crypto custodians such as depository institutions affiliated with crypto business. Other areas include staking, airdrops, and hardforks.
Special Purpose Depository Institutions (SPDI) Wyoming Law
The ‘Blockchain Banks’ in Wyoming got approval back in February 2019; they have served as a financial intermediary for the crypto industry. This is because the entities provide an alternative channel that is not FDIC compliant hence suits the crypto space. According to Long, the new laws governing these firms as well mark a major milestone within the regulatory framework of crypto-oriented firms.
As for the airdrops, Wyoming’s new crypto law directs that proceeds be allocated to the owner of digital assets and not a custodian unless stated in writing. Long was also keen to note that the report was thorough having been checked by COO’s, CTO’s and law advisors with knowledge in the FinTech space.
Wyoming has been quite active in crypto and blockchain-oriented projects; the state’s senate approved digital currency as a form of money back in February. Furthermore, they also defined the aspect of tokenization and designed laws that recognize digital tokens as intangible property.
Back in 2018, the state of Wyoming relaxed the laws governing the trade of ICO tokens and passed a bill that exempted digital currencies from the Money Transmitter Act. The scarcely populated state seems to be taking a bigger leap with blockchain and digital asset opportunities.