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The
proposed guidance expresses the IDFPR’s interpretation of
Illinois’ Transmitters of Money Act (“TOMA”) and the application
of its interpretation to various activities involving digital
currencies. Decentralized digital currency is an electronic
medium of exchange that is not created or issued by a central
authority, is not legal tender, and can be used to purchase
goods and services or to exchange for other currencies.
“As innovative payment technologies grow in popularity, it is
vital that we provide a succinct regulatory framework that gives
businesses operating in this space necessary clarity,” said
Bryan A. Schneider, IDFPR Secretary. “We plan to study digital
currencies carefully as the technology develops, however, at
this point in time digital currencies like Bitcoin, given their
low transaction volume and relatively niche use, are best viewed
as a speculative investment or possibly even a new type of asset
class, not as money.
IDFPR’s proposed guidance seeks to establish the regulatory treatment of
decentralized digital currencies under existing definitions of money
transmission in Illinois, as defined in the Illinois Transmitters of Money Act
(205 ILCS 657). Digital currencies currently do not fit the statutory
definitions of “money” and, therefore, do not independently trigger the
licensing requirements of TOMA. However, some business activities involving
decentralized digital currency that involve the receipt of “money” can trigger
the licensing requirements of TOMA. IDFPR’s proposed guidance considers several
types of digital currency activities and offers guidance on their licensing
implications.
IDFPR will accept comments on the proposed guidance until January 18th, 2017 at
5:00pm CST.
Comments can be submitted by clicking here.
IDFPR's full text of the proposed "Digital Currency Regulatory Guidance" can be
found here.
[Illinois Department of Financial and
Professional Regulation] |
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