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Utah Seeks to Exempt Blockchain Firms from Money Transmitter Act

By Shannon Wilson | March 5, 2019
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Utah Seeks to Grow Fintech and Blockchain Sector with New Regulatory Sandbox

The US state of Utah has introduced a new bill which aims to exclude blockchain companies from being considered as money transfer services under the Money Transmitter Act.  

In the last week of February, Republican senator Daniel Hemmert raised Senate Bill 213 in Utah, also known as the Blockchain Technology Act, stating that the Money Transmitter Act should not be applied to any individual that “facilitates the creation, exchange, or sale of certain blockchain technology-related products”.

The bill also looks to establish, amongst other things, a legislative task force to study blockchain applications for government services, recommend a suitable pilot project for the state, and review possible uses of blockchain for future economic development in Utah.

The task force will then need to submit a report on its findings, as well as any legislative proposals, to the Business and Labor Interim Committee and the Legislative Management Committee on or prior to November 30.

Back in January, Pennsylvania had already clarified that cryptocurrency trading platforms and service providers are exempted from needing a money transmission license to operate within the state.

North Carolina, however, holds an opposing position – it requires crypto related businesses to hold a money transmission license in the state, although this was adopted earlier on back in 2016.

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