In accordance with Alaska law governing the transfer of money, the phrase “virtual currency” will be implemented on January 1, 2023.

Businesses that deal in virtual currencies will be required to obtain a money transmission license in the state if this bill passes.

In order to do business in the state that involves cryptocurrency, companies will need to obtain a new type of license.

As noted in a report released Dec. 19 by the law firm Cooley, the state of Alaska recently amended its legislation governing money transfers to include a description of virtual currency.

A person engaging in money transmission activities involving virtual currency must submit a license application, as required by an amendment to the local Administrative Code that was adopted by the Division of Banking and Securities (DBS). This change will take effect on January 1, 2018. The most obvious impact of this change is that it will require an individual to submit a license application.

The concept of monetary value and the types of investments that are permitted under the amendment will be expanded to include virtual currency, consistent with other provisions of the amendment.

However, based on Cooley’s research findings, loyalty and rewards programs, as well as digital tokens used in online gaming, are still excluded from the virtual money category.

Even before the amendment passed, platforms that handle cryptocurrency were required to obtain a money transmission license in the state of Alaska.

However, an earlier version of your Limited License Agreement (LLA) with DBS did not expressly include the concept of virtual money.

As a result, these LLAs will no longer be valid as of January 1.

Alaska is one of nine jurisdictions that continue to provide investors the option of not paying capital gains taxes.

The remaining states are Wyoming, South Dakota, New Hampshire, Nevada, Texas, Tennessee, and Florida. Also included are Washington, Wyoming, and South Dakota.

However, the most recent analysis by Invezz ranks it only 36th out of 50 states in terms of cryptocurrency acceptance.