Few topics have been more heavily debated in the past year than
the validity, value and overall outlook of Bitcoin and other
cryptocurrencies. Although Bitcoin and other emerging virtual
currencies have been around for years they remain largely
unregulated, as do the activities that support them –
exchanges, wallets, etc. However, with the spike in investor
interest and the rapid escalation in the creation of new virtual
currencies state lawmakers are starting to consider ways to
regulate these activities.
State regulation of virtual currency
In 2014, New York was the first state to adopt a
"BitLicense" requirement. Essentially, anyone involved in
a "virtual currency business activity" in New York must
apply to obtain a license to conduct such activities. In addition,
several other states, including Alabama, Connecticut, New
Hampshire, North Carolina and Washington, have adopted legislation
designed to address the regulation of virtual currency
activity.
