Wyoming Insurance Companies Received Permission to Invest in Cryptocurrencies

The authorities of the US state of Wyoming have adopted a document allowing local insurance companies to investmoney in crypto assets, including bitcoin.

The document was adopted at the end of February andtakes effect on July 1, 2020. It defines digital assets as “representations of economic rights, ownership and access rights that are stored in a format that requires a computer to read and includes digital consumer assets, digital securities and virtual currencies.” Interestingly, virtual currency can be recognized as a digital asset used for exchanging and storing wealth, but which should not be recognized as legal tender in the United States.

Insurance companies can also invest in “digital consumer assets”, which are understood as assets used and bought for consumption, personal or for household needs.

As representatives of the Americanlaw firm Kramer Levin, the Wyoming bill was the first of its kind in the United States. However, it is not yet clear whether the state's insurance companies will invest in digital assets, because they usually take a conservative approach to their investment portfolios.

“But insurers can be attracted, especially in volatile markets, by the fact that such assets do not correlate with macroeconomic risks,” the law firm said in a statement.

According to the founder and CEOAs Caitlin Long's Avanti cryptocurrency bank prepares to launch in Wyoming, insurance companies will offer cryptocurrencies as a component of a variable insurance policy.

</p></p>