Crypto Businesses Reject Proposed Regulations in Nevada

Wilfred Michael 

Wilfred Michael

News reporter

16 March 2019,
Crypto Businesses Reject Proposed Regulations in Nevada

In mid-February 2019, State Bill 195 also known as—Uniform Regulation of Virtual Currency Businesses Act—was introduced to the Nevada Senate as a way to bring legal certainty and public trust in crypto-related businesses.

However, during a March 12 Judiciary Committee hearing on the bill, crypto industry experts rejected the proposed regulations, citing that it would hamper growth rather than speed it up.

The primary reasons outlined by those who shared their thoughts on the bill were sections which classified crypto-related businesses as money transmitters and another which required that such entities register with the Nevada Department of Business and Industry.

Responding to the bill, the Nevada Technology Association (NTA) argued that it was premature and will likely put the state at a competitive disadvantage because the blockchain industry is still at its early stage.

Wendy Stolyarov, government affairs director at crypto startup, Filament was also among those who protested against the new bill. She wrote in a statement that the bill would “unintentionally” classify exchanges and wallet providers as a money transmitter, despite the fact they only “build hardware wallet technology that enables a machine-to-machine autonomous transaction.”

Still, another government affairs official from Blockchains LLC expressed dissatisfaction at the proposed regulations mainly because no crypto-related businesses were involved in the process of creating the bill.

Hopefully, the concerns expressed by the crypto industry participants will be put into consideration when Nevada lawmakers debate the bill, ahead of deciding whether to pass it into law or make necessary changes as requested.

Moving away from crypto regulation in the U.S, financial regulators in neighboring Canada, this week released proposed rules to govern cryptocurrency exchanges and similar businesses.

However, unlike the case in Nevada were crypto businesses claim they were not contacted, Canadian regulators are seeking public comments on how to improve the rules.

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