Wyoming, USA Announces First Encrypted Hosting Rule for Blockchain Banking

According to Cointelegraph's recent news, the US state of Wyoming has announced a series of custody rules for so-called “blockchain banks” involving areas such as forks, airdrops and equity pledges.


According to a tweet issued by Catherine Lang, Chairman of the Blockchain Working Group of Wyoming, these rules were announced at the Fordham Legal Blockchain Regulatory Symposium in New York on November 11.

"The first in history" encryption hosting regulations

In February of this year, the “blockchain bank” legally known as “special purpose depository institutions” (SPDIs) was approved by the Wyoming legislature and would serve those federal deposit insurance companies that were unable to obtain cryptocurrency transactions. An insurance banking service company.

Caitlin Long said on Twitter that the newly released custodian is the first regulatory requirement for digital asset custodians in multiple fields, including forks, airdrops, mortgages, customer notification requirements and more.

The rules stipulate that, unless otherwise agreed in writing, all auxiliary/subsidiary income defined as being obtained through fork, airdrop, and mortgage is automatically owned by the user, not the custodian. The rule also prohibits “blockchain banking” from authorizing or assisting in re-collateralizing escrowed assets.

Lang said that the four-digit encryption company chief technology officer, several chief operating officers and dozens of lawyers have reviewed the above rules.

Wyoming encryption legislation process

Wyoming is the least populous state in the United States and has approved a number of legislation related to blockchain and cryptocurrency.

In January of this year, the Wyoming Senate passed a bill that treats cryptocurrencies as currency. The House of Representatives then passed again on February 14. In the same month, Wyoming passed a bill to define open blockchain tokens as intangible personal property and to establish a financial technology regulatory sandbox. In February, the state passed two other bills on tokenization and industry compliance, which introduced a “special purpose depository institution”.

In 2018, the Wyoming Senate and the House of Representatives passed a bill to relax the state's securities regulation and currency transfer laws for tokens issued through ICO. In March 2018, the state legislature passed an independent House bill to exclude cryptocurrencies from the Wyoming Currency Transfer Act and passed a House bill in February to exclude cryptocurrencies from state property taxes. Outside.