Colorado Governor Signed Digital Token Act
Jared Polis, the Governor of Colorado has signed the Digital Token Act. As there are strict securities registration rules and regulations the new law exempts some of the cryptocurrencies from the securities laws. This act allows the companies to do business in more open environment now.
New Digital Token Act will not only open new door and business opportunities in Colorado but also bring the trust among the people regarding the blockchain technology and cryptocurrencies. It has also removed the regularity uncertainty linked with cryptocurrencies.
Highlights of Digital Token Act are:
- Digital tokens can be used to transfer value using blockchain technology network.
- Digital tokens will not be treated as securities
- Act specify the difference between a existing regulated securities (stocks and bonds) and cryptocurrencies those are used to create and execute smart contracts.
- Certain cryptocurrencies will exempted from the article 51.
As Colorado has already become the hub for crypto related startups, the act is going to help the companies to develop new blockchain based business.
Image Credit: colorado.gov
Disclaimer: We do not encourage or suggest anybody to invest in Bitcoin and other Cryptocurrencies, please do your own full research and follow the law/rules as per your country standard.