Lawmakers in Nebraska have enacted a new law that will allow cryptocurrency bank accounts to be opened in the state. The bill, which passed both the state’s House and Senate with overwhelming support, comes with a few stipulations: applicants must be at least 18 years old, have a tax identification number, and have a license to do business in Nebraska.
President of the United States Donald Trump issued an executive order last March that, among other things, prohibits citizens from transacting in virtual currency from the United States. The order defines virtual currency as a digital representation of value that can be digitally traded and functions as a medium of exchange, unit of account, or store of value. The order appeared to classify cryptocurrencies, which are used to buy everything from pizza to airline tickets to precious metals, as a type of property that the government could control.
On May 2, Nebraska signed new legislation that will allow banks to handle cryptocurrency assets. According to local news reports, the bill was sponsored by Sen. Adam Morfeld and was enacted with the intention of encouraging crypto-related businesses to do business in the Corn Husker State. While the new law doesn’t explicitly mention blockchain or crypto, its impact on these industries is clear.
When it comes to the adoption of cryptocurrencies, state governments in the US are leading the way. Today Nebraska Governor Pete Ricketts signed House Bill 649, and the state joined Miami, Wyoming and several other states in making it easier to do business with cryptocurrencies. The Nebraska Financial Innovation Act, introduced by Senator Mike Flood, creates a new banking license for institutions that deposit digital assets. The banks will offer the same services as Avanti Bank, a Wyoming-licensed Specialized Depository Institution (SPDI). Blockchain fintech company Telcoin has drafted a bill. The company plans to offer its digital asset-based financial services to customers in the United States. The charter is the first of its kind to revolve around consumers and connect them to decentralized finance (DeFi) in a secure and regulated way, Telcoin said in a statement. Paul Neuner, CEO of Telcoin, explained the role of banks under the new charter: Essentially, this new status is an alternative type of bank that is not allowed to lend your money to others. Institutions under this new charter will use blockchain technology to allow users to store digital assets independently and use their money to their own advantage. Telcoin advisor and former director of the Nebraska Department of Banking and Finance Mark Kwandal authored the legislation. This new legislation is designed to level the playing field and allow technology to determine access to capital, Kwandal said. This could be a much better deal for disadvantaged segments of society who feel excluded from the current banking system, he added. Senator Flood said the bill sends the right message that Nebraska is open for business in this exciting new field. Nebraska’s IDPS will not be able to accept cash. They have a minimum reserve of $10 million and must hold all their assets in reserve. The bill also requires institutions to list digital assets before the word bank. The word bank has become a bone of contention between banks and PSDI proponents. It took 18 weeks of negotiations to agree on a new bill. Flood introduced two bills in the House of Representatives in January: Digital Asset Transactions Act and the Nebraska Financial Innovation Adoption Act. In March, Wyoming passed a law clarifying the legal status of the VAO. The state has issued an SPDI charter to Kraken Bank, as well as to Avanti, and has also protected bitcoin and other cryptocurrencies under commercial law.
Telecoin Pte Ltd – is a Singapore-based blockchain fintech that offers a wallet solution to users. According to the company, it connects existing mobile money platforms to the decentralized financial system of the future, starting with a global money transfer service aimed at the telecommunications sector. Telecoin has now received investment for its ICO from high profile investors. Telcoin is the revolution fintech dreams of, a global cryptocurrency available on a convenient and reliable network, says Michimasa Naka, Telecoin advisor and CEO of Boardwalk Capital.On May 14, Nebraska became the first state to officially enact a crypto law that is expected to give a boost to the digital currency industry, according to a report by the Omaha World-Herald. The new law, which goes into effect on July 15, 2018, will allow banks to accept and hold virtual currencies as collateral for loans. The new law will allow banks in the state to apply for a license to take on cryptocurrency as collateral for business loans. Should a cryptocurrency-collateralized loan go south, the bank will be able to liquidate the crypto holdings to cover the loan. The law will also apply to businesses that accept cryptocurrency as payment, making it easier for them to convert the currency into cash.. Read more about nebraska financial innovation act and let us know what you think.
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