New law on virtual currency, online transactions in Alabama
MONTGOMERY, Ala. (AP) — Alabama has a new law on virtual currency and online transactions.
Al.com reports that the Alabama Monetary Transmission Act became law this month and replaced the 1961 “Sale of Checks Act.” The state’s legislature passed it in May.
The new law covers bitcoin to regulation of money transfers and provides law enforcement new tools to track international financial crimes.
Alabama Securities Commission Director Joseph Borg said the passing of the new law is important for the state.
“This significant legislation will help streamline our regulatory and enforcement activities to meet the challenges presented by modern technology,” Borg said, “such as the use of cyber currency, online money transmissions and further assists law enforcement in preventing money laundering and activities involving the illegal international transfer of funds.”
Officials said the previous law did not have administrative and enforcement authority and predated the digital age.
The Alabama Monetary Transmission Act includes “virtual” currency such as bitcoin, and lays out a record-keeping process. It allows the Alabama Securities Commission to audit those records and regulates money transmitters and covers non-banking entities that engage in checks and money transfers, as well as debt management services.
But it exempts several establishments such as banks, bank holding companies, securities-clearing firms, payment and settlement processors, broker-dealers and government entities.