April 21, 2021

Wyoming Introduces Cryptocurrency Storage Rules for Financial Institutions

Wyoming has introduced digital asset retention policies for financial institutions. The rules apply to forks, token distributions, and staking.

These provisions have been published on Twitter.Caitlin Long is president of the Wyoming blockchain task force, and later unveiled at the Fordham Law Blockchain Regulatory Symposium in New York.

As Caitlin Long said, these rules have been reviewed by many technical experts and legal advisors.

In the new provisions, the concept appears“Blockchain banks” - the so-called special credit institutions, whose activities were approved by the legislative bodies of Wyoming in February this year. These institutions were created to serve companies that cannot use banking services and insure their funds with the Federal Deposit Insurance Corporation (FDIC) due to the fact that they work with cryptocurrencies.

According to the new rules, all additionalthe profit received from the free distribution of tokens, forks and staking (cryptocurrency mining using the PoS method) is automatically accrued to the client, and not to the organization in which the digital assets are stored, in the absence of another written agreement. The rules also prohibit “blockchain banks” from securing the cryptocurrencies they have in their custody.

Wyoming Senate approved in Februarya bill recognizing digital assets as property and setting rules for banks to provide custodial cryptocurrency services. In addition, in the winter, the authorities of this state approved four more draft laws relating to the blockchain and cryptocurrency industry: a bill on special depository institutions, a commercial storage system, corporate token stocks, and digital assets.

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