Starting in 2023, companies will have to obtain a new type of license to operate in the state using cryptocurrency.
Effective January 1, 2023, the term “virtual currency” will replace Alaska’s money transfer regulations. Businesses that trade digital currencies must obtain a remittance license in the state. As
Law Firm Cooley reported on Dec. 19, Alaska amended its remittance rules to include a definition of “virtual currency.” According to local administrative law amendments passed by the Banking and Securities Department (DBS), virtual currencies are:
The most obvious effect of this change, which came into effect on 1 January, is 1 is the requirement to submit a permit application form for “individuals who conduct virtual currency remittance activities”. According to other parts of the
Amendment, “virtual currency” is also included in the definition of “permitted investment” and “monetary value”. However, as Cooley’s analysis points out, affinity and rewards programs and digital tokens for online gaming remain outside the realm of “virtual currency.”
Cryptocurrency platforms were even required to obtain an Alaska remittance license even before the change. However, the previous nature of the Limited License Agreement (LLA) with DBS specifically excluded the concept of digital currency. Therefore, after January 1st, these LLAs will be retired.
Alaska is one of nine states that still offer zero capital tax gains to investors. The others are Washington, Wyoming, South Dakota, New Hampshire, Nevada, Texas, Tennessee, and Florida. Nevertheless, according to a recent survey conducted by Invezz, he ranks only 36 out of 50 states when it comes to cryptocurrency adoption.
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