On 8 March, Colorado Governor Jared Polis signed the Law on Digital Tokens , which excludes certain cryptocurrencies from the requirements of securities laws and opens up possibilities for the functioning of fintech companies without the need to comply with a number of registration requirements.
Colorado lawmakers submitted draft law SB19-023 earlier this year to eliminate regulatory uncertainty in the cryptocurrency space.
In accordance with the new law, satisfying certain criteria digital tokens can be used to transfer values through the blockchain and will not be recognized as securities or otherwise regulated by legal acts created to apply to completely different financial instruments.
Cryptocurrencies, “the primary function of which is a consumer one,” can be offered, sold, and translated without imposing restrictions as provided for in article 51 of the Colorado law.
“Colorado has become the epicenter of companies and entrepreneurs seeking to use a crypto-economic system in business models based on blockchain technology , ” the document says.
Aspiring to use a cryptoeconomic system, companies face regulatory uncertainty and suggest that the issue, sale and purchase of digital tokens , the primary function of which is consumer, may be prohibited by 51 articles. The consumer function of the token means that it is primarily used to obtain goods, services or content. "
In addition, brokers-dealers and other trading platforms that work with such tokens are exempt from the validity of the relevant requirements. A law signed this week takes effect on August 2.
Exciting day for #blockchain technology. @GovofCO @jaredpolis a signed the #Digital the Token Act today has been with key state legislators, Attorney of General @pweiser , and #Colorado cabinet members with Patty Salazar has @DORAColorado , @BetsyMarkey with OEDIT, and @TheresaSzczurek of @OITColorado . pic.twitter.com/erOEloEdpy
– TheresaSzczurek (@TheresaSzczurek) March 7, 2019
“It's a great day for the blockchain technology ,” wrote Teresa Schurek, the chief information officer for the Colorado government.
Publication date 10.03.2019
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