Louisiana might get a bill for licensing crypto firms

Written by: Ali Raza
January 26, 2021
  • The US state of Louisiana might soon see the addition of a new law regarding cryptocurrency businesses.
  • It will allow the state to start offering licenses for crypto businesses within the state of Louisiana.
  • The new bill promises to define a number of crypto-related terms as well.

For years now, working with cryptocurrencies in the US used to be extremely risky, which is why most entrepreneurs opted to seek out crypto-friendlier environments. This usually meant basing their businesses in other countries.

However, with the development of the crypto industry, it seems that some states are taking matters into their own hands. For now, this means launching licenses for crypto businesses. The state of New York has its BitLicense, and according to public records, Louisiana might soon get its own version of a license for crypto businesses.

A new Louisiana legislation sees progress

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According to records, the lower chamber of Louisiana’s state legislature recently approved a new measure that could get passed and signed into the state’s law. If this comes to pass, the state would create a unique framework for licensing digital currency-related businesses.

The new legislation is sponsored by state rep, Mark Weight. It was filed earlier this year, and its goal is to start a process for crypto-focused firms that will allow them to obtain an official license in the state of Louisiana.

A long battle for crypto in Louisiana

This is also not the first time that Wright attempted to bring the state to delivering crypto-oriented laws. Previously, he pushed for bringing a crypto-based regulatory regime on a state level, as well.

If the legislation sees the light of day, it would create a definitional language for crypto businesses, including exchanges. That would include an entire range of crypto-related terms.

The bill also repeated the past proposal frim Virtual Currency Business Act, which was a result of an effort that started in 2015, and lasted for several years.

Wright’s proposal was approved by the state’s House of Representatives last week, on May 20th. The approval was unanimous, with 92 ‘yeas.’ After that, it was sent to the state’s Senate, and after that, to the Committee on Commerce, Consumer Protection, and International Affairs.