This week, the Conference of State Bank Supervisors (CSBS) released a draft regulatory framework policy on virtual currency. During a year long assessment, the CSBS’s Emerging Payments Task Force examined the intersection between state supervision and payments developments to identify areas for consistent regulatory approaches among states. Focusing its assessment on consumer protection, market stability and law enforcement, the CSBS recommended that activities involving third party control of virtual currency, including for the purposes of transmitting, exchanging, holding, or otherwise controlling virtual currency, should be subject to state licensure and supervision. The policy is not intended to cover the merchants and consumers who
use virtual currencies solely for the purchase or sale of goods or services. Also, the policy is not intended to cover activities that are not financial in nature but utilize technologies similar to those used by digital currency (ie. cryptography-based
distributed ledger system for non-financial record keeping). The goal of the policy is to offer guidance, clarity, and consistency to state regulatory agencies and recognition of each state’s respective virtual currency licenses.
The CSBS is accepting public comments until February 16, 2015, electronically by PDF or by mail: Attn: Emerging Payments Task Force, Conference of State Bank Supervisors, 1129 20th Street NW, 9th Floor, Washington, DC 20036.
Click here to read the CSBS policy statement.