Bill436: New Hampshire has increased the scope of MSB licensing and clarified exemptions

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Bill436: New Hampshire has increased the scope of MSB licensing and clarified certain exemptions for users of virtual currency.

House bill 666 (HB666) regulated money transmission services using virtual currency. This was approved in July 2015 and was effective from 1st January.

As a result, ‘Receiving currency or monetary value for transmission to another location’ now includes virtual currency. Money transmitters (MSBs) are regulated under CHAPTER 399-G LICENSING OF MONEY TRANSMITTERS.

A new bill has been proposed: House Bill 436 (Bill 436).

This Bill seeks to expand the regulated activities of Money Transmission involving virtual currencies. In addition to money transmission “including maintaining control of virtual currency on behalf of others” is proposed to be a new regulated activity of MSBs.

Bill 436 also seeks to exempt certain activities (proposing additional clause in Section 399-G:3).

Bill 436 provides an exemption from MSB licensing for “Persons conducting business using transactions conducted in whole or in part in virtual currency.” This exemption is really to ensure that users of virtual currency are not captured by MSB regulations.

Bill 436 will take effect 60 days after its passage, which is going to be May 14.