New Colorado Law To Facilitate Trading With Some Tokens
The US state of Colorado decided to exclude some digital assets from the local securities laws. Jared Polis, the Bitcoin-optimistic state governor, signed the new Digital Token Act. The document is published on the government website.
The new regulatory document from March 8, 2019, may facilitate the cryptocurrency turnover in the state. However, the issuing companies must comply with certain conditions established by the authorities.
In particular, cryptocurrencies that were initially developed for consumptive purposes, such as receiving goods, services or content, are exempt from the law on securities. In turn, these tokens should not be used for speculative purposes and investments.
According to the document, broker-dealers and traders with digital assets no more need to work under the license.
The new law will come into force on August 2, 2019.
Such a step confirms the intention of the Colorado government to turn the state into a technology center, where entrepreneurs could open a business related to blockchain. The lawmakers believe it will strengthen the economy of Colorado and attract more venture capitalists, investors, and developers to the state.
It is noteworthy that the Colorado authorities adopted a crypto-friendly law amidst the massive shutdown of scam ICOs. In 2018, the state filed lawsuits against 20 cryptocurrency projects suspected of fraud.
Previously, the Utah authorities developed a law on blockchain.