Vermont Updates Money Transmitter Law

Blockchain, Investing, News, Regulation | May 9, 2017 By:

Vermont has passed a new law that updates the state’s money transmission rules to include a definition for “virtual currencies.”

The Vermont House Bill 182, first introduced in February with six sponsors, was signed into law on May 4, according to public documents.

The bill makes clear that virtual currency counts as a permissible investment, but “only to the extent of outstanding transmission obligations received by the licensee in identical denomination of virtual currency.”

The bill defines “virtual currency” as “stored value that: (A) can be a medium of exchange, a unit of account, or a store of value; (B) has an equivalent value in money or acts as a substitute for money; (C) may be centralized or decentralized; and (D) can be exchanged for money or other convertible virtual currency.”

This is the second time Vermont has passed legislation for digital currency and blockchain technology. Last year, Vermont passed a measure allowing blockchain records to be admissible in court.