The world of Bitcoin and digital currency is plagued by regulatory uncertainty in certain parts of the world. The United States, in particular, could prove to be a rather difficult market to get into if businesses are not offering their services there already. Every individual state may regulate Bitcoin differently, which will harm business in the long run. The state of Wyoming is causing many concerns for Bitcoin-related businesses right now.
Wyoming Division of Banking Regulatory Policy
When we are talking about Bitcoin and digital currency in the United States, Wyoming is one of the many states that never gets mentioned in either a positive or negative context. In fact, to date, there has not been any mention of anything Bitcoin-related taking place in the state of Wyoming, and there is no Bitcoin ATM to be found there, either.
Considering the fact Wyoming is the least populated state in all of North America, it is still worth exploring the option of introducing the masses to Bitcoin in that area. To make matters more interesting, the state of Wyoming does not regulate online gambling in any way. It is only logical to assume local officials would not be open towards Bitcoin and digital currency either.
However, as it turns out, the Wyoming Division of Banking has a different mindset. As is the case in any US state, there is such a thing called the “Money Transmitter Act”, which includes certain guidelines and regulations all companies have to adhere to. When it comes to Bitcoin, there is always money involved in one way or another, meaning every company operating in the state has to adhere to the Wyoming Money Transmitter Act.
In the case of Bitcoin companies, each company is obligated to maintain dedicated fiat currency reserves in an amount equal to the aggregate face value of all Bitcoin held on behalf of their customers. It goes without saying that this is impossible to achieve, for both small and large businesses alike.
As a result of these regulatory policies by the Wyoming Division of Banking, Bitcoin exchange and wallet service provider Coinbase have ceased all activities in the state. Coinbase deems it costly, impractical and more important, inefficient, to establish a redundant reserve of fiat currency in an equivalent value to Bitcoin.
Wyoming Bitcoin Community Expresses Concern
Coinbase’s services in Wyoming are suspended for the time being, even though it remains unclear as to whether or not they will be offered again any time soon. The Wyoming Bitcoin community is concerned about this regulatory stance and fears that more local Bitcoin-related businesses will suspend their services in the near future.
Keeping In mind Wyoming is the least populated state and how Bitcoin activities are already fairly limited as it is, Bitcoin enthusiasts can only hope that the Division of Banking will revise the Money Transmitter Act. If this is not the case, there may very well be no Bitcoin-related activities in the state of Wyoming any time soon.
Source: Coinbase Blog
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