Illinois Proposing Changes to Supervision of Virtual Currencies

The Illinois’ Department of Financial and Professional Regulation (“IDFPR”) recently proposed regulatory guidance on the application of Illinois’ Transmitters of Money Act (“TOMA”) to decentralized digital currencies.

From the request for comment, which closed January 18:

“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.

To keep up to date on developments, you can follow IDFPR on Twitter and Facebook.