Alaska Legislates For Virtual Currency!


 "You can go to Alaska's plan, don't be too warm like chicken poop"

The largest state in the United States (US) Alaska is about to implement a money transfer license from January 1, 2023, which requires every company transaction involving digital currency to have the license.

The State of Alaska will amend its money transmission regulations through a local Administrative Code approved by the Division of Banking and Securities (DBS) to include a definition of “virtual currency”.

Generally, the term "virtual currency" is used as a medium of exchange, unit of account or store of value*.

*An asset, commodity or currency that can be stored, retrieved and exchanged in the future without depreciating in value.

As a result, Alaska will implement licensing applications for individuals and companies involved in money transmission activities based on virtual currency from the beginning of this year.

The virtual currency amendment is also included in the permitted investments, but rewards and digital tokens of online games are not yet included in the virtual currency category.

Although the amendment is in the process, companies are encouraged to obtain an Alaska remittance license before the amendment is made.

It is also worth noting that Alaska is among the nine states that continue to offer 0% capital gains tax to investors to date.

While the other eight states that implement similar offers are from Washington, Wyoming, South Dakota, New Hampshire, Nevada, Texas, Tennessee and Florida.