Virtual Currency Businesses Act – 2023 Legislation

On June 13, 2023, Governor John Bel Edwards signed Senate Bill 185, Act 331, which provides a clear and concise regulatory structure intended to ensure compliance with the provisions of the VC Act, as enacted by Act 341 of the 2020 Regular Session of the Louisiana Legislature. We believe that these legislative changes will result in greater transparency and provide consistency with other OFI licensure programs.

Key provisions contained in SB 185, Act 331, which can be found in its entirety at Louisiana Legislature Acts 331, include the following:

  • Provides additional terms and definitions (Section #1382)

  • Repeals unnecessary and/or redundant terms and definitions (Section #1382)

  • Provides for the approval of advanced change of control notice through the NMLS (Section #1385.1).

  • Provides for the approval of advanced change of responsible individual notice through the NMLS (Section #1385.2)

  • Reestablishes minimum surety bond and tangible net worth requirements (Section #1386)

  • Requires submission of audited financial statements as evidence of satisfying tangible net worth requirements (Section #1386.1)

  • Provides for greater protection of resident assets (Section #1386.2)

  • Clarifies the requirements relating to issuance, denial, and renewal of a license (Section #1387)

  • Requires submission of quarterly financial reports through the NMLS (Section #1388.1)

  • Repeals an exception to licensure relating to registrations (Formerly Section #1389)

  • Expands the Commissioner’s authority and flexibility relating to examinations (Section #1391)

  • Details the books, records, and accounts to be maintained by a licensee (Section #1391.1)

  • Provides for the adoption and implementation of minimum compliance policies and procedures by a licensee (Section #1391.2)

  • Expands the enforcement authority of the Commissioner as it relates to violations of the VCBA (Section #1392)

  • Requires accurate and appropriate disclosures to residents as it relates to exchanging, transferring, or storing virtual currency through a licensee (Section #1393.1)

  • Authorizes the adoption and implementation of emergency rules in order to prevent or terminate any condition the Commissioner reasonably considers to create an emergency relative to a particular licensee or licensees in general (Section #1394)

Click Here to access the Nationwide Multistate Licensing System and Registry (NMLS) website and information relating to the filing of a VC application.

If you have any questions, please contact the Non-Depository Division at 225-925-4660.

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