The New Hampshire State House has voted to exempt virtual currencies from money transmitter regulations. It allows cryptocurrency exchanges to resume operations in the state.
The House Bill 436 clarifies the definition of virtual currency and exempts persons using virtual currencies from registering as money transmitters. According to the document, a virtual currency is:
“…A digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value but does not have legal tender status as recognized by the United States government.”
The regulatory change will address, among others, anyone conducting business with virtual currencies, including maintaining control of virtual currency on behalf of others.
Therefore, once the bill takes effect, the cryptocurrency exchanges that earlier halted operations in the state due to financial regulations, could return to do business with New Hampshire residents. One of such exchanges is Poloniex, which in September 2016 decided to suspend services for New Hampshire customers due to regulatory changes.
This act shall take effect within 60 days after its passage. The document also needs to be signed by New Hampshire governor Chris Sununu.
In October 2016, the state tightened financial regulations. The new rules required licensing for all money transmitter services, including those working with virtual currencies. In obliged trading platforms to pay a total maximum annual fee of $5,000 for operating as a money transmitter and post a continuous surety bond of up to $100,000.