The Uniform Regulation of Virtual-Currency Businesses Act: What You Need to Know

The Uniform Regulation of Virtual-Currency Businesses Act (URVCBA) is ready for adoption by state legislatures. It would create a statutory framework for regulating persons engaging in "virtual-currency business activity" that assume or maintain "control" over a client's virtual currency—meaning companies that have the power to execute unilaterally or prevent indefinitely a virtual currency transaction.

Under the URVCBA, "virtual-currency business activity" essentially means exchanging, transferring, or storing virtual currency; holding electronic precious metals or certificates of electronic precious metals; or exchanging digital representations of value used in online games for virtual currency, legal tender, or bank credit outside the game, on behalf of a resident of the enacting state. "Virtual currency," of which "bitcoin" is one well known type, is defined as a digital representation of value that is used as a medium of exchange, unit of account, or store of value—but is not legal tender.

Fred Miller, who recently joined Ballard Spahr as special counsel in its Minneapolis office, chaired the Uniform Law Commission's Drafting Committee for the URVCBA and a proposed accompanying uniform act to provide commercial law rules for virtual currency transactions. In the webinar, Mr. Miller will provide an overview of the URVCBA and respond to questions from other Ballard attorneys who will also offer their insights on the URVCBA and related issues.

We will discuss the following topics:

• An overview of the URVCBA and the existing federal/state law framework applicable to virtual currency

• The URVCBA's tiered regulatory structure

• Businesses excluded from the URVCBA

• Information that must be provided by an applicant for a URVCBA license

• Availability of reciprocal licensing for multistate businesses

• URVCBA requirements for covered businesses

• The likelihood of enactment in the 50 states

• The topics likely to be covered by the companion act

• How companies can address legal gaps pending adoption of companion act