American state of Louisiana legislators passed a crypto businesses licensing bill that is only awaiting to be signed into law, as per public records. The new bill will provide a structure to properly regulate entities working in the digital currency industry.
The legislation backed by a state representative, Mark Wright, was filed earlier this year. The bill looks to create a procedure for firms tied to digital currencies to seek and secure operating licenses in the state of Louisiana.
Louisiana warming up as crypto businesses licencing bill awaits approval
The new laws would see the creation of definitional language for cryptocurrency exchanges and the words and phrases associated with digital assets. Louisiana is following in the footsteps of New York, to release its own BitLicense to regulate the expanding cryptocurrency industry in the United States.
The House of Representatives in the state advanced the bill on May 20 with 92 members agreeing to the legislation. There are several requirements that all crypto businesses should fulfill with Louisiana’s Office of Financial Institutions (OFI) before beginning to operate in the state; such as recording of fingerprints, do a “experience, character, and fitness” test, pay an initial non-refundable fee of $2,000 and an annual renewal fee of $1,000.
It’s not over yet
Despite the eagerly anticipated law receiving green-light from the lower chamber, there is still a long way to go to obtain approval from others such as the State Senate, Consumer Protection, and the Committee of Commerce. Additionally, the bill is quite costly. Its enactment will cost over $150,000 and its total cost will probably break past $1 million in the next five years.
Cryptocurrency licensing in the United States varies in different states. Back in 2019, although it was launched countrywide, Binance US was still not available in 13 states including Louisiana. Nevertheless, the booming cryptocurrency industry has forced many of them to regulate digital currencies.