Texas Department of Banking outlines new policy for virtual currencies

Texas Department of Banking (TDB) has outlined new rules for virtual currencies that will provide clear information and regulatory satisfaction for businesses and individuals working with virtual currencies.

Texas Department of Banking (TDB) has outlined new rules for virtual currencies that will provide clear information and regulatory satisfaction for businesses and individuals working with virtual currencies.

The new policy Supervisory Memorandum 1037, Regulatory Treatment of Virtual Currencies was issued by Texas Department of Banking Commissioner, Charles Cooper, under the Texas Money Services Act.

The policy focuses on cryptocurrencies such as Bitcoin and provides information related to money transmission and currency exchange by showing narrow definitions of money and currency.

Moreover, as Cryptocurrencies does not come under the statutory definitions of currency or money, some common business activities related to cryptocurrency that involve the receipt of government-issued currency can trigger the licensing requirements of the Act.

Cooper said at this point a cryptocurrency like Bitcoin is best viewed like a speculative investment, not as money.

"However, as this innovative technology develops, the TDB will continue to evaluate whether the nature of cryptocurrencies and the potential harm to the public warrant additional action," Cooper added.