Canadian Blockchain Startup Expands Into Wyoming

Nova Scotia-based blockchain startup BlockCrushr has chosen Wyoming for its new corporate subsidiary
12 February 2018   85

The startup chose this state due to the state’s openness to both the technology and cryptocurrencies. The state legislature suggests the startup is confident about the prospects of the policy.

The state is currently working on several blockchain-related proposed policies, including Bill HB0070. This bill supports a digital coin issued on an open blockchain that’s not subject to securities and money transmission regulations as long as it meets a set of the following criteria:

  • digital tokens are not marketed to the public as investments

  • token users  can exchange it for goods or services

  • there are no repurchase agreements involved

  • the token issuer must not be a broker-dealer or in any way deal in securities

This bill was introduced in January and sponsored by a trio of lawmakers. Policymakers are looking to enact the bill in July 2018.

Bill HB0070 would be a blessing to BlockCrushr Wyoming. The startup is in the process of being incorporated and is located in Cheyenne-based coworking space The Second Floor @ the Paramount.

Wyoming is one of the best places in the U.S. to do business. Between low startup costs, the most business-friendly tax system in the country, and lawmakers who are focused on supporting and fostering the growth of innovative business and technology, Wyoming just makes sense.

Scott Burke

BlockCrushr Labs chief

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   71

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.