The new US state, Rhode Island will introduce money transmitter laws to regulate the crypto firms. Any business body that charges for currency transactions or deals with cryptos for others will come under this law. It will come into action from the 1st of January, 2020.
The licensing system for crypto firms in Rhode Island complies with many strict policies. It includes anti-money laundering, anti-fraud protocols, and security policies. Additionally, the firms should also safeguard sensitive or any personal information. Also, it should hold the confidentiality of any transaction it receives, makes or maintains. Most of the adaptations are based on the money transmission laws of the state. Although, it’s essential for firms to hold the equivalent amount and kind of cryptos that has been transmitted. As per the bill, cryptocurrencies carries a digital value that is used for transactions. However, it is not a legal tender whether or not named in legal tender.
These cryptocurrencies are outside the reach of the legislation. It’s existence solely define on a gaming or blockchain platform. However, there is an exception licensing of crypto exist for personal, family or household uses such as academic purposes, etc.
In June, Rhode Island’s Department of Administration/Division of Purchase granted public solicitation for blockchain solutions covering many areas. It included licensing, contracts, antifraud, medical marijuana, and crowdsourcing.