Nevada’s regulatory stand on cryptocurrency kiosks has shifted, now requiring a state money transmission license.
Speaking with CoinDesk, BitAML Elder Advisor Annelise Strader said Nevada abruptly and without announcement changed its regulatory stance on cryptocurrency kiosks.
Look into b pursuing the last legislation session closing in May without passing a proposed cryptocurrency bill, Strader says the state’s regulatory gang changed its interpretation of what constituted a money transmitter within the state. Kiosks must be licensed by the state and bequeath require a surety bond requirement.
Priced at $5,000 per kiosk, surety bonds are paid to the state as an insurance apparatus for customers against business failure.
Strader first spoke with the state regulator on behalf of a BitAML purchaser caught in the red tape. Months followed before an answer was given, Strader said.
Following up with the Nevada Sectioning of Financial Institutions, state regulator Julie Hanivold said they were waiting on the cryptocurrency regulation note to pass before taking action. The regulator began reviewing the matter one year ago. With the bill failing to obsolescent, the regulator self-determined to reinterpret current statutes concerning state money transmissions.
Under the new interpretation, any transfer of value–profit, credit, virtual currency, or other–falls under the license. Businesses and proprietors must apply and complete a checklist to ones hands on a license. Included in the list is a surety bond requirement of $10,00 upfront plus $5,000 for each location. Treaty requirements max out at $250,000.
Hanivold said all requirements are publicly posted on the state’s website but they have no future plans of flowing a press release on the matter. The regulator does plan on calling back a dozen or so businesses that have inquired atop of the past year.
Paraphrasing her conversation with Hanivold and confirmed by CoinDesk, Hanivold said: “We’re not going to go hunting and punishing any kiosks, but six months down the road if any action hasn’t been taken, [we will begin notifying owners.]”
Symbol via CoinDesk archives