Wisconsin Slow to Regulate Cryptocurrency
Written by: Mary McCarthy
In the state of Wisconsin, there are currently very few concrete regulations or guidelines for cryptocurrency transactions. While many states are considering licensure structures for crypto assets, Wisconsin seems reluctant to regulate the growing digital assets field. Wisconsin has long urged investors to use extreme caution with crypto transactions, and, surprisingly, there are no license agreements under consideration in the state.
Assembly Bill 325, currently under review in the state, would allow the Department of Revenue to address the disposition of unclaimed virtual currencies and securities. Virtual currencies are presently categorized as property for tax purposes in Wisconsin. The bill stipulates that any abandoned virtual currency is subject to be turned over to the Department of Revenue, but only in the form of U.S. currency.
The bill’s language also clarifies that “virtual currency” does not include software or protocols that govern the transfer of digital representation of value, game-related digital content, loyalty cards, or gift cards. The bill explicitly defines “virtual currency” as “a digital representation of value used as a medium of exchange, a unit of account, or store of value that does not have legal tender status recognized by the United States.”
As cryptocurrency and blockchain technology continues to evolve in practice and popularity, it will be vital to keep up with current digital asset legislation in states. Licensure agreements are becoming more standard with virtual currency transactions.
Assembly Bill 325. 2019 Assembly Bill 325. (n.d.). https://docs.legis.wisconsin.gov/2019/proposals/ab325.
Morton , H., & Stiegler, L. (n.d.). Cryptocurrency 2021 Legislation. https://www.ncsl.org/research/financial-services-and-commerce/cryptocurrency-2021-legislation.aspx. State Regulations on Virtual Currency and Blockchain Technologies (Updated March 2021). JD Supra. (2021, March). https://www.jdsupra.com/legalnews/state-regulations-on-virtual-currency-2160466/.