DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 701 Reengrossed 2020 Regular Session Wright
Abstract: Enacts the Virtual Currency Businesses Act.
Proposed law defines "applicant", "control", "department", "exchange", "insolvent", "legal tender",
"licensee", "person", "reciprocity agreement", "registrant", "registration","regulated financial
institution", "resident", "responsible individual", "state", "store", "transfer", "United States dollar
equivalent of virtual currency", "virtual currency", "virtual currency administration", "virtual
currency business activity", and "virtual currency control services vendor".
Proposed law applies to the virtual currency business activity of a person who engages in or holds
itself out as engaging in the activity with, or on behalf of, a resident.
Proposed law describes activities for which proposed law is not applicable.
In addition to the exempted activities described, proposed law allows the office of financial
institutions (OFI) to determine that a person or class of persons, given facts particular to that person,
shall also be exempt from the provisions of proposed law.
Proposed law requires a person engaging in virtual currency business activity, or holding itself out
as being able to engage in virtual currency business activity, with or on behalf of a resident to be
licensed by OFI and establishes the criteria for licensure.
Proposed law provides for the appeal of a denial of an application for licensure and the renewal of
a license.
Proposed law provides for the reciprocity of a license issued by another governing authority and the
transferability of a license issued pursuant to proposed law.
Proposed law requires a security deposit from applicants for licensure.
Proposed law authorizes a virtual currency business that meets certain criteria to engage in business
pursuant to a registration with OFI in lieu of obtaining a license.
Proposed law authorizes OFI to enforce proposed law through certain actions and provides for
penalties for the violation of proposed law.
Proposed law requires OFI to promulgate administrative rules to implement and enforce proposed law.
(Adds R.S. 6:1381-1394)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Delete the defined term "bank" and instead define "regulated financial institution" for the
purposes of proposed law.
2. Provide that proposed law does not apply to any activity by a regulated financial
institution.