Wyoming Introduces Cryptocurrency Storage Rules for Financial Institutions

Wyoming has introduced digital asset retention policies for financial institutions. The rules apply to forks, token giveaways and staking.

These provisions were posted on Twitter by Caitlin Long, president of the Wyoming blockchain task force, and then made public at the Fordham Law Blockchain Regulatory Symposium in New York.

As Caitlin Long said, these rules have been reviewed by many technical experts and legal advisors.

In the new provisions, the concept of “blockchain banks” appears – the so-called special credit institutions, whose activities were approved by the legislative bodies of Wyoming in February this year. These institutions were created to serve companies that cannot use banking services and insure their funds with the Federal Deposit Insurance Corporation (FDIC) due to the fact that they work with cryptocurrencies.

According to the new rules, all additional profit received from the free distribution of tokens, forks and staking (cryptocurrency mining using the PoS method) is automatically credited to the client, and not to the organization in which the digital assets are stored, in the absence of another written agreement. The rules also prohibit “blockchain banks” from securing the cryptocurrencies that they have in storage.

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In February, the Wyoming Senate approved a bill recognizing digital assets as property and setting rules for banks to provide custodial cryptocurrency services. In addition, in winter, the state’s authorities approved four more bills related to the blockchain and cryptocurrency industries: a bill on special depository institutions, a commercial storage system, corporate stock tokens, and digital assets.