Nevada Cryptocurrency Kiosks Now Require Money Transmission Licenses

Following the last legislation session closing in May without passing a proposed cryptocurrency bill, Strader says the state’s regulatory team changed its interpretation of what constituted a money transmitter within the state. Kiosks must be licensed by the state and will require a surety bond requirement.

Nevada’s regulatory stance on cryptocurrency kiosks has shifted, now requiring a state money transmission license.

Speaking with CoinDesk, BitAML Senior Advisor Annelise Strader said Nevada abruptly and without announcement changed its regulatory stance on cryptocurrency kiosks.

Priced at $5,000 per kiosk, surety bonds are paid to the state as an insurance mechanism for customers against business failure.

Strader first spoke with the state regulator on behalf of a BitAML customer caught in the red tape. Months followed before an answer was given, Strader said.

Following up with the Nevada Division of Financial Institutions, state regulator Julie Hanivold said they were waiting on the cryptocurrency regulation bill to pass before taking action. The regulator began reviewing the matter one year ago. With the bill failing to pass, the regulator self-determined to reinterpret current statutes concerning state money transmissions.

Under the new interpretation, any transfer of value–money, credit, virtual currency, or other–falls under the license. Businesses and proprietors must apply and complete a checklist to obtain a license. Included in the list is a surety bond requirement of $10,00 upfront plus $5,000 for each location. Bond 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 issuing a press release on the matter. The regulator does plan on calling back a dozen or so businesses that have inquired over the past year.

Paraphrasing her conversation with Hanivold and confirmed by CoinDesk, Hanivold said: “We’re not going to go hunting and penalizing any kiosks, but six months down the road if any action hasn’t been taken, we will begin notifying owners.”

New Central Bank Group to Discuss Digital Currency Benefits at April Meeting: Report

In mid-April, the chiefs of six central banks as well as the Bank for International Settlements (BiS) will hold a meeting in Washington to discuss the potential creation of their own digital currencies, according to a report from Nikkei.The planned meeting would be the first by the group formed last month amid growing concerns among financial authorities about the rise of regulated digital fiat currencies, most notably Facebook’s Libra and China’s digital yuan.

In January, central banks from the U.K., Sweden, Switzerland, Canada, Japan and the EU formed the working group with BIS to further study the application and feasibility of central bank digital currencies (CBDC).

The central bankers plan to discuss how digital currencies could streamline international payments, and will also look at security measures that might be required, according to the report.

“It’s quite natural to consider how to make international transactions more convenient,” Masazumi Wakatabe, deputy governor of the Bank of Japan, told the publication Wednesday.

China is currently closest to launching a CBDC among the major nations, with the People’s Bank of China reportedly testing its digital yuan. That has prompted other central banks, including the U.S. Fed Reserve, to start looking more seriously at the possibility, in part to avoid falling behind China if it launches a globally used digital fiat that might rival the dollar’s international status.

Top officials of the six banks will prepare their findings on CBDCs before the leaders meet in April at the sidelines of an international conference in Washington, according to Nikkei.

The group aims to have an interim report ready for June and a final report in the autumn.

In late January, a Bank of Japan official said if advances in payments technology are quickly made, there may be more demand for a central bank digital currency. As such, it’s “very important” the bank should lay the groundwork of the technology and be “prepared to respond.”

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