On June 30, the governor of Connecticut signed into law HB 7042 to amend various provisions to its money transmission statutes, state payments and investments in virtual currency, and minors’ money sharing application accounts. The law amends existing statutes to update definitions and requirements for money transmitters, including new provisions to include the transmission of stored value or virtual currency via digital wallets and expands certain disclosure requirements previously only applicable to virtual currency kiosks to all money transmitters engaging in transmission of virtual currencies. It also prohibits virtual currency transmitters from pledging or otherwise encumbering the virtual currency it holds on behalf of others and engaging other unapproved third parties from storing or holding custody of such assets on its behalf. The act prohibits the state and its subdivisions from accepting or investing in virtual currency and establishes new protections for minors using money sharing applications: requiring parental attestation and providing rights to request account deletion and data access. The act goes into effect October 1.
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