Crypto and Louisiana Law: Staying in Compliance with Cryptocurrency Investing in Louisiana
Louisiana, like many other states, is home to a burgeoning crypto scene. With the current cryptocurrency craze showing no signs of slowing down any time soon, people across the country, including in Louisiana, are anxious to cash in on crypto.
But cryptocurrencies are still a relatively new and under-regulated investment. Considering this, would-be investors are understandably anxious and curious about what the current cryptocurrency investing regulations look like in their state and how it affects their ability to make money on the fast growing commodity. So what exactly does Louisiana law say about staying in compliance regarding cryptocurrency investing?
Louisiana Sale of Checks and Money Transmitter Act
The Louisiana Sale of Checks and Money Transmitter Act is the statute governing money transmission in the state. The regulation currently requires that “Any person who engages in the business of money transmission or selling of checks as a service or for a fee or other consideration in Louisiana must submit a company application through the NMLS (Nationwide Multistate Licensing System).”
Unfortunately, the act hasn’t been specifically updated to address virtual currencies, leaving investors to resort to other recently issued information for guidance on cryptocurrency investing.
Consumer and Investor Advisory on Virtual Currency
In 2014, the Louisiana Office of Financial Institutions issued guidance for cryptocurrency consumers and investors that described the state’s regulatory approach. The memo offers encouraging support for the emerging industry, stating that “Virtual currencies have legitimate purposes and can be purchased, sold, and exchanged with other types of virtual currencies or real currencies like the U.S. dollar.”
This state sanctioning of cryptocurrencies is welcome news for any crypto consumer or investor.
Federal Law Cited in the Memo
The 2014 guidance also cites federal guidance issued in March 2013 by the Financial Crimes Enforcement Network (FinCEN) to “clarify the applicability of the regulations implementing the Bank Secrecy Act ("BSA") to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies.”
It goes on to state that “Such persons are defined within the guidance as "users," "administrators," and "exchangers." Specifically, an exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency.”
Louisiana Crypto Licensing & Regulation
The clearest indication yet of Louisiana’s stance on cryptocurrency regulation comes in a line declaring that “an exchanger is the only party who may be subject to licensure as a money transmitter by this Office at this time.”
This indicates that the licensing requirements in place for money transmitters may also apply to businesses involved in the exchange of cryptocurrencies, and this could possibly change at any moment. It is still not an entirely clear-cut policy, but it provides the most solid guidance we’ve received so far in attempting to navigate the rules surrounding crypto in Louisiana.
Pelicoin - The Place to Buy Crypto in Louisiana
With Louisiana law giving people the green light on cryptocurrencies, now is a great time to stock up on virtual currencies. Whether purchasing Bitcoins for consumer use or as an investment, Pelicoin is a Louisiana-based network of crypto ATMs that provides you with a convenient way to do exactly that. With our extensive network of ATMs spread out all across the state, Pelicoin is the place to buy and redeem Bitcoin, Litecoin, and Ethereum in Louisiana.
Give us a call at (504) 507-0879 or email email@example.com to get started now.