News

Florida to Create Position for Cryptocurrency Czar, Increase Regulatory Clarity

Georgi Georgiev | Jun 27, 2018 | 13:00

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Florida’s Chief Financial Officer (CFO) revealed plans to create a statewide position to oversee the application of current securities and insurance legislation for Initial Coin Offerings (ICOs) and digital currencies. Furthermore, ICO and cryptocurrency firms now have to register with the Office of Financial Regulation (OFR). 

Wanted: Cryptocurrency Czar

Florida’s CFO Jimmy Patronis said that he has instructed his office to create a position for a state-specific cryptocurrency czar.

While the specific responsibilities for the job are still to be disclosed, Patronis made it clear that whoever is appointed will have to “oversee how current securities and insurance laws apply to Initial Coin Offerings (ICOs) and cryptocurrencies as well as shape the future of these regulations in our state.”

Florida’s move follows one from the U.S. Securities and Exchange Commission (SEC), which recently appointed Valerie Szczepanik as the Senior Advisor for Digital Assets and Innovation and Associate Director of the Division of Corporate Finance. She is tasked to “coordinate efforts across all SEC Divisions and Offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including Initial Coin Offerings and cryptocurrencies.”

Increased Regulatory Scrutiny

Besides announcing his plans to create the aforementioned position, Patronis also said that new requirements for ICO and cryptocurrency companies in the state will be put in place:

ICO and cryptocurrency companies based in Florida will also be required to register with the Office of Financial Regulation (OFR) under the supervision of the cryptocurrency chief.

The main reasons for these changes are fueled by the increasing acceptance of cryptocurrencies across the country.

Patronis also refers to the fact that cryptocurrencies are even officially recognized as means for payment of taxes, identification cards and license plates in Seminole County.

Florida’s CFO openly states that he doesn’t intend to deter the rampant development of the industry but merely wants to further protect the state’s citizens from the risks associated with it:

The establishment of a cryptocurrency chief in the state will help protect Floridians from scams. Understanding the risks and benefits of this emerging industry will benefit Florida consumers. My goal is to keep pace with demand and not deter innovation while monitoring for fraudulent behavior and scams.

Do you think Florida is making the right move towards regulating the cryptocurrency industry? Don’t hesitate to let us know in the comments below! 

Images courtesy of Shutterstock, Bitcoinist Archives.