Louisiana Lawmakers Consider Crypto Business Licensing Bill

[Paglamon]

The lower chamber of Louisiana’s state legislature has approved a measure that will create a framework to license cryptocurrency businesses if passed and signed into law. The legislation, which according to public records is sponsored by state Rep Mark Wright, looks to create a process by which companies that focus on cryptocurrencies can obtain a license in the state.

It would also create a definitional language for cryptoassets exchanges and terms related to “virtual currency.” If passed, the bill would see crypto businesses apply with the state’s Office of Financial Institutions (OFI), subject their executives’ “experience, character and general fitness” to an investigation, and pay a non-refundable registration fee among other requirements.

OFI has reportedly projected it will charge a $2,000 application fee and $1,000 for annual renewal. Registrants licensed by states with comparable regimes would not need a Louisiana license.

Speaking to CoinDesk Andrew Hinkes, a lawyer with Carlton Fields, said the bill appears to derive from the Virtual Currency Business Act (VCBA), a licensure regime from the Uniform Law Commission (ULC) that came as a result of a multi-year effort dating back to 2015.
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