Connecticut has decided to walk away from crypto by becoming the first state to fully block government involvement in digital assets.
On June 10, lawmakers unanimously approved Public Act No. 25-66, which applies strict limits on the state and its local governments’ interactions with cryptocurrencies.
Under the new law, public agencies are banned from creating or holding any kind of crypto reserve. They are also not allowed to accept digital currencies as payment for taxes, fees, or any other amount owed to the state or local authorities.
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It also places new requirements on crypto-related businesses operating in the state. Companies that transfer money using virtual currencies must clearly warn customers about the risks.
These businesses must display a message that says:
LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE RECOVERABLE AND TRANSACTIONS IN VIRTUAL CURRENCY ARE IRREVERSIBLE.
Additionally, there are new protections in place for younger users. Companies must verify the identities of anyone under 18 and give full details about each crypto transaction when requested.
Furthermore, the legislation updates Connecticut’s financial rules, which include defining terms such as “digital wallet” and “kiosk” and ensuring that licensed crypto firms follow compliance standards. These updates give the state more control over how crypto services operate locally.
Recently, the Monetary Authority of Singapore (MAS) announced new policies regarding overseas services provided by Singapore-based cryptocurrency firms. What do the regulations say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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