The Conference of State Bank Supervisors yesterday finalized its new framework for model state-level regulation of virtual currencies such as bitcoin. The task force said its goal was to ensure that consumers are protected when using virtual currencies, that markets remain stable and that transactions are transparent to law enforcement.
The framework seeks to employ a “technology-neutral” approach based on licensing and monitoring activities one party performs on behalf of another that are already covered under state laws. These include money transmitting, exchanges and third-party services that facilitate these functions or store virtual currencies.
In its comment letter earlier this year, ABA welcomed the framework and noted that the CSBS approach would help protect consumers, ensure a level playing field, promote security and be responsive to market and consumer demand.