Virginia updates crypto legislation

The Senate of Virginia has passed a bill amendment that will enable traditional banks based on the territory of the Commonwealth to offer virtual currency custody services.

House Bill No 263 was introduced earlier his year and has now received an amendment that will give local financial institutions a stronger foothold in the cryptocurrency industry.

The bill specifically states: “A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

There was no opposition to the motion as the bill passed the Senate vote with an overwhelming 39-0 in favor.

The bill lays out specific criteria that banks that wanting to engage with custody services need to fulfil beforehand. Those include the implementation of effective risk-management systems as well as adequate insurance coverage.

Last there must be an oversight program that can accurately assess risks and inform customers about those risks.

“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank”, the bill specifies.

Virginia is not the only state to pursue a similar course towards cryptocurrencies and mainstream banking.

Others, including Wyoming and North Carolina, have broached the topic, and have openly pushed for legislation that incorporates cryptocurrencies in law and provides consumers and businesses with a clear-cut framework.

If you wish to continue using cryptocurrencies recreationally, we encourage you to check out our recommended casino websites, including Bitcasino, 1xBit or FortuneJack.

Source

Updated: 03/07/2022 — 14:00