Bitcoin regulation bill is coming again. West Virginia in the United States is proposing legislation to define Bitcoin as a monetary tool

Golden Finance News - Recently, officials in West Virginia, USA, are passing an anti-money laundering (AML) bill to determine the legality of Bitcoin and other digital currencies in order to strengthen local Bitcoin regulation.

The region’s latest bill, “Resolution 2585,” plans to add Bitcoin to the local anti-money laundering law while defining the digital currency as a “monetary instrument.”

(West Virginia proposes legislation to define Bitcoin as a monetary instrument and strengthen Bitcoin regulation. Image source: Golden Finance)

Digital currency may be defined as a monetary instrument in West Virginia

West Virginia, like Florida, is pushing for new anti-money laundering regulations to strengthen bitcoin regulation. West Virginia Assembly Bill 2585 will be subject to judicial review by Governor Jim Justice.

(The new Bitcoin regulatory bill is awaiting review and approval by Governor Jim Justice. Image source: Golden Finance)

In essence, the bill provides a legal definition for new technologies that constitute monetary instruments, mainly tools like Bitcoin that are independent of the central bank. After the bill is passed, the scope of work for Bitcoin regulation will be clearly divided.

Resolution No. 2585 provides:

“This bill was enacted to combat criminal offenses related to money laundering. The bill creates two felonies involving: laundering the proceeds of crime through financial transactions; and transportation, transfer, or assignment of the proceeds of crime. The bill also provides for the confiscation of proceeds of crime involved or traceable to money laundering.”

New Bitcoin Regulation Bill Await Governor’s Approval

The West Virginia bill seeks to define Bitcoin as a monetary instrument, which is traditionally defined as par value currency and checks, but also includes gift cards and prepaid cards.

According to the newly revised regulations, if the bill is approved, cryptocurrencies such as Bitcoin will be included in the regulatory scope of monetary instruments, so that local government agencies can take a series of measures to regulate Bitcoin.

(West Virginia's draft bill proposes to define Bitcoin as a monetary instrument. Image source: Golden Finance)

The bill passed the House of Representatives 78-21 and passed unanimously during a Senate hearing. If the bill becomes law after the governor’s assent, it would subject West Virginia to heavy penalties and forfeiture of funds laundered using Bitcoin.

“Cryptocurrency” means a digital currency that uses cryptographic techniques to manage the generation of currency units and verify the transfer of funds.

The West Virginia bill explains that the bill not only strengthens the regulation of Bitcoin, but also includes a range of digital currencies.

The West Virginia bill seeks to define Bitcoin as a monetary instrument, and the bill is very similar to new proposed legislation coming out of Florida, which would recognize Bitcoin as a monetary instrument.

Bitcoin supporters in West Virginia believe that the ordinance could have a worrying effect if it follows the opinions of some state lawmakers, as a few years ago, West Virginia Senator Joe Manchin wrote a letter to regulators asking for a ban on the use of Bitcoin.

(Joe Manchin believes that strengthening Bitcoin regulation is worse than banning it. Image source: Golden Finance)

West Virginia Senator Joe Manchin once called Bitcoin a dangerous currency that harms the interests of Americans. Senator Joe Manchin wrote in a letter at the time:

“Bitcoin’s use in anonymous transactions for illegal goods and services or for speculative gambling concerns me. I urge regulators to work together and act quickly to ban this dangerous currency from harming hard-working Americans.”

Therefore, when it comes to Bitcoin regulation, he would rather stop using Bitcoin.