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Regulations
The US state of Colorado has introduced the "Colorado Digital Token Act" which provides some "exemptions from the laws on government bonds for cryptocurrencies", according to the text of the law. Meanwhile, the head of state securities has already taken action against 20 initial coin bids.
Read also: The Indian Supreme Court moves the cryptographic hearing, the community asks for positive regulations
Colorado Digital Token Act
Lawmakers in Colorado introduced the "Colorado Digital Token Act" on Friday which, among other proposals, exempts cryptocurrencies from certain securities laws. According to the deposit:
The bill includes limited exemptions from the registration of securities and licensing requirements for financial intermediaries and sellers for digital tokens.
<img class = "size-medium wp-image-271452 alignright” title=”Colorado presents a bill with exemptions of the law on titles for cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/welcome-300×198.jpg” alt=”Colorado presents the bill with legal title exemptions for cryptocurrencies "width =" 300 "height =" 198 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/welcome- 300×198.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/welcome-768×506.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019/ 01 / welcome-696×458 .jpg 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/welcome-638×420.jpg 638w, https://news.bitcoin.com/wp-content/ uploads / 2019/01 /welcome.jpg 987w "sizes =" (maximum width: 300px) 100vw, 300px”/>The Colorado companies "face regulatory uncertainty" according to the laws on state securities, explains the law. In addition to defining digital tokens, the bill notes that "The costs and complexities of government bond registration can outweigh the benefits" to companies that have "a primarily consumer purpose" operating in the cryptocurrency space in Colorado. According to the bill, the purpose of consumption "means providing or receiving goods, services or content, including access to goods, services or content."
<img class = "size-medium wp-image-271455 alignright” title=”Colorado presents a bill with exemptions of the law on titles for cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/coins-3-300×160.jpg” alt=”Colorado presents the bill with exemptions on titles for cryptocurrencies "width =" 300 "height =" 160 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/coins -3-300×160.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-3-768×410.jpg 768w, https://news.bitcoin.com/wp-content / uploads / 2019/01 /coins-3-1024×547.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-3-696×372.jpg 696w, https: // news .bitcoin.com / wp -contents / uploads / 2019/01 / coins-3-786×420.jpg 786w, https://news.bitcoin.com/wp-content/uploads/2019/01/coins-3.jpg 1044w "sizes =" (max -width: 300px) 100vw, 300px”/>The bill also states that this new act will allow state businesses "that use cryptographic systems to obtain growth capital to help [them] grow and expand. "
The Colorado Sun publication elaborated, "If a token does not qualify under the Colorado safe harbor law, it will have to be" analyzed according to the typical securities law, or what is known as the Howey test. "
Colorado cryptic regulatory attempts
<img class = "size-medium wp-image-271463 alignright” title=”Colorado presents a bill with exemptions of the law on titles for cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/flag-co-300×217.jpg” alt=”Colorado presents the bill with title exemptions for cryptocurrencies "width =" 300 "height =" 217 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/flag -co-300×217.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/flag-co-768×556.jpg 768w, https://news.bitcoin.com/wp-content / uploads / 2019/01 /flag-co-324×235.jpg 324w, https://news.bitcoin.com/wp-content/uploads/2019/01/flag-co-648×470.jpg 648w, https: // news .bitcoin.com / wp -content / uploads / 2019/01 / flag-co-696×504.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2019/01/flag-co-580×420. jpg 580w, https: / /news.bitcoin.com/wp-content/uploads/2019/01/flag-co.jpg 800w "sizes =" (maximum width: 300px) 100vw, 300px”/>In April of last year, Colorado lawmakers presented a bill called "Law on money transmitters coming out of virtual currency". Initially it was approved with only one vote but, according to the news, it failed after some legislators changed their minds.
In June, Governor John Hickenlooper created the Council for the Advance of Blockchain Technology. The group is tasked with providing recommendations for "a complete legal framework to support blockchain technology that considers potential applications and limits of technology and consumer protection," the state said at the time. Shapeshift CEO Erik Voorhees was among the blockchain industry leaders nominated for the board.
<img class = "size-medium wp-image-271458 alignright” title=”Colorado presents a bill with exemptions of the law on titles for cryptocurrencies” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/col-agency-300×78.jpg” alt=”Colorado presents the bill with qualifications for cryptocurrencies "width =" 300 "height =" 78 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/col -agency-300×78.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/col-agency-768×199.jpg 768w, https://news.bitcoin.com/wp-content / uploads / 2019/01 /col-agency-1024×266.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/col-agency-696×181.jpg 696w, https: // news .bitcoin.com / wp -content / uploads / 2019/01 / col-agency-1392×361.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2019/01/col-agency-1068×277. jpg 1068w, https: / /news.bitcoin.com/wp-content/uploads/2019/01/col-agency.jpg 1453w "sizes =" (maximum width: 300px) 100vw, 300px”/>Meanwhile, the Colorado Securities Division has taken action against initial coin offerings (ICOs) allegedly operating illegally in the state. The division announced on November 20th that the Securities Commissioner Gerald Rome had presented 20 cases against the allegedly fraudulent ICOs. These orders are the result of investigations by the ICO Task Force, which is part of the Department of State Regulatory Agencies (DORA).
What do you think of the Colorado digital banknote? Let us know in the comments section below.
Images courtesy of Shutterstock and the state of Colorado.
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