Connecticut House Bill HB06802

Connecticut 2015 Regular Session

• Introduced: 2/18/15
• Refer: 2/18/15

Caption

An Act Concerning Virtual Currencies.

Impact

The bill introduces detailed definitions for various terms such as 'virtual currency', 'money transmission', and 'payment instrument', thereby providing clarity to the legal landscape surrounding digital currencies. It specifies that any business intending to transmit virtual currencies will be subject to the same obligations as traditional money transmission entities, including the need for a surety bond calculated based on the volume of transactions. Consequently, this will likely increase compliance costs for businesses operating in this niche, impacting their ability to operate effectively without appropriate oversight.

Summary

House Bill 06802, titled 'An Act Concerning Virtual Currencies', aims to expand the existing Money Transmission Act in order to include the regulation of virtual currencies. It modifies several sections of the general statutes to accommodate the rising popularity of digital currency, ensuring that entities engaged in the transmission of such monetary values must adhere to specified licensing and bonding requirements. The bill's intent is to establish a regulatory framework that ensures consumer protection and maintains the integrity of financial transactions involving virtual currencies.

Contention

One notable point of contention surrounding HB 06802 is the balance between regulation and innovation. Advocates argue that the proposed regulations will protect consumers from potential fraud associated with virtual currencies. However, opponents caution that overly stringent regulations could stifle innovation within the fintech sector, limiting the ability of new players to enter the market. Stakeholders are concerned that excessive regulatory burdens could create barriers to entry for legitimate businesses seeking to operate within this emerging field.