The senate bill 5031 has been passed into law and is introduced in the state of Washington of the U.S. setting new regulations for cryptocurrency exchanges.
With the new law, the state’s money transmitter laws will apply to exchanges, in which they would be required to obtain a license from the Washington State Department of Financial Institutions and would also be required to provide third party audit of their data systems.
The law further mandates a new transmitter bond requirement, which would have the figure tied to the amount of currency exchange during the previous year.
Though the public records show law came into force on July 23, the law makers finalised the measure in April which was sent to the Gov. Jay Inslee. Inslee signed it days after the work on the bill was completed.
Citing the new regulations, the cryptocurrency exchanges Poloniex and Bitfinex would no longer be serving the customers there. On the other hand, New York-based startup exchange Gemini obtained an approval to start serving customer in the state earlier this year.