Rhode Island Will Regulate Crypto Under Money Transmitter Laws

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Rhode Island has become the latest U.S. state to add specific money transmitter guidance for crypto firms.According to a report published August 5 from Alston and Bird, an international law firm, any business that accepts fees for currency transmissions, or maintains control over virtual currencies for others will fall under the new law beginning January 1, 2020.Part of Rhode Island’s licensure for crypto firms are strict compliance metrics, anti-money laundering and anti-fraud protocols, and security requirements. Firms must also demonstrate an operational ability to “protect the confidentiality, integrity, and availability of any non-public personal information or currency transmission it receives, maintains, or transmits.”Many of these requirements are adaptations from the standing money transmission legislation in the state. What’s new is a firm must maintain holdings of cryptocurrencies in kind and quantity equal to amount being transmitter by clients.In the bill, cryptocurrencies are defined as “a digital representation of value that…

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