Blockchain Paradise: Wyoming Case

nRunaway commentary: “Wyoming blockchain Union” has put forward a package of blockchain motion, and get the only local university officials and parliamentary speaker support. The state has always insisted on providing preferential policies for the registration of enterprises and has also led the country in the relevant laws and regulations of limited liability companies. Therefore, we also hope that through the regulatory channels, we will provide the blockchain companies with supervision over securities laws and regulations governing money transfer services, reduce their compliance costs and attract these enterprises to create opportunities for the diversification of financial ecology in the state. At the same time, the state’s well-established consumer protection and anti-fraud measures are confident of ending the illegal activities in the area of ​​blockchain.n
nTranslation: Annie_Xun
MP Tyler Lindholm is a farmer in Sundance, Wyoming, and a Republican member of the Wyoming House of Representatives. Caitlin Long, a native of Wyoming, was President and Chairman of Symbiont and former Managing Director of Morgan Stanley.n
Wyoming will be open arms welcome blockchain community.n
The Wyoming Blockchain Coalition, a grassroots group, has accumulated considerable momentum in its efforts to pass a package of legislation that will bring significant benefits to blockchain communities and to Wyoming.n
A blockchain blockchain bill will be presented during a February parliamentary session to create two characteristics for Wyoming that will make it particularly attractive for the blockchain sector: zero corporate income tax or royalties, and strengthening the privacy laws of the state’s registered limited liability company.n
Companies that do not need to transfer entities to Wyoming also get the edge, just as Delaware businesses do not need to be in the state. But there’s a good reason companies want to move there too. For example, the huge fiber optic broadband and cheap electricity in Cheyenne, the capital of Wyoming, have attracted large data centers to settle here.n
Our initiative has also been actively supported by officials from the only university in the region. So Wyoming has a “good bones” to build a regulatory framework that is enough to attract the blockchain industry.n
License exemptionn
Perhaps most excited by the blockchain community is the newly proposed act HB0070, which frees tokens issued on the public blockchain from money transfer service providers and securities laws, and of course uses tokens to promote investment in line with investment products and commodities and Service Exchange as a precondition. The act also allows a tokens exchange (or a person trading tokens) to be identified as a broker or dealer in compliance with state law. The bill is already backed by senior co-sponsors, including the Speaker of the House of Representatives.n
Often, whether a tokens belongs to the securities required by the law of the state or not, whether the new law gives immunity will require factual and situational analysis. Businesses must have their own legal counsel.n
We consider non-securities blockchain tokens as a new category of assets that are neither currencies nor securities and therefore have reason to believe that existing money transfer service providers and securities laws do not apply.n
For example, in many cases, such blockchain tokens are just prepaid software licenses. If a tradable gift card and prepaid phone talk time are not governed by currency and securities laws, why does the pre-paid software license fall into this category?n
This is true in many states, but not in Wyoming, and we are confident legislators can approve it.n
Wyoming consumer regulation is strongly protected by anti-fraud and consumer protection laws, which we believe are sufficient to prevent the bad guys from setting up companies in the state. Businesses should analyze whether federal securities laws apply.n
Other measuresn
The Wyoming blockchain coalition also supports two other motions, all of which will be presented at the February meeting.n
The so-called bitcoin act H.B.0019 is designed to exempt fictitious currencies from Wyoming’s money transfer service providers regulations. This alone will allow companies that have left the state in 2015 to return to their businesses, such as Coinbase. This will add a dynamic new industry to the state’s financial industry. And the bill has received a lot of co-approvals, including the Senate chairman.n
Another, the so-called “filing act,” will bring state secretary of state acquisition information on the blockchain, similar to the one passed by Delaware in July last year. It will cover corporate financial statements of legal persons, limited liability companies and Uniform Commercial Code. The purpose of this legislation is to allow the preservation of ownership and ownership of official records in the blockchain. Ultimately this will enable other states, counties, cities and enterprises to eliminate receipts, property rights and other written records.n
Registered company of a limited liability companyn
Wyoming passed the nationwide first limited liability company statute in 1977 and can also lead the trend of registering limited liability companies on the blockchain. This can attract valuable businesses to register here, and academic research has shown that nearly two-thirds of new companies registered in the United States are limited liability companies.n
New types of limited liability company users, such as those who want to limit liability for autonomous car and IoT service, are drawn to the state’s limited liability company’s efficiency in registering on the blockchain. This will especially appeal to series LLC, a structure of limited liability companies in which the assets of each firm are independent of each other and their responsibilities and obligations are independent of one another. This limited liability company structure is also supported by the Wyoming Blockchain Alliance Another initiative.n
The limited liability company is so popular in the state that almost every two residents in the state own a company.n
The state has become a paradise for the blockchain industry and will be further strengthened with existing attractions if the blockchain package is passed. These bills give tremendous advantages to blockchain companies registered or established in the state and bring significant benefits to the state. We welcome the blockchain community to support us in achieving these results.n

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