GREEN SHEET REDIGEST
HB 701 2020 Regular Session Wright
COMMERCE: Provides for the licensing and regulation of virtual currency businesses
DIGEST
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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the reengrossed bill
Page 1 of 2
Prepared by Beth O'Quin. 1. Make technical changes.
Page 2 of 2
Prepared by Beth O'Quin.