NH Bill Seeks Bitcoin Regulation Exemption

The New Hampshire state Senate is currently considering a bill that would exempt virtual currency like bitcoin from money transmitter regulations in the state.

Sponsored by Representatives Barbara Biggie, Keith Ammon and John Hunt, bill HB 436 passed the House of Representatives in the state last month by a vote of 185-170.

The bill passed recently out of the Senate Commerce Committee on a 3-2 vote and is slated to be voted on by the full Senate.

If passed, the bill will free every user of bitcoin and other virtual currencies within New Hampshire from money transmission regulations, which may allow businesses such as bitcoin exchanges within the state to operate without strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.

The bill read: “‘Virtual currency’” means a digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value but does not have legal tender status as recognized by the United States government.”

“Allowing bitcoin and other virtual currency to be regulated by the (federal) Consumer Protection Act provides certainty for consumers while allowing this kind of currency to continue to be used,” said State Sen. Dan Innis, R-New Castle.

Senate Democratic Leader Jeff Woodburn argued strongly against the exemption, “Removing this third party oversight is not only risky for consumers but also makes it easier for drug dealers and other criminals to carry out illegal, untraceable transactions in New Hampshire.”