Coinbase cryptocurrency exchange will resume its services for the resident of Wyoming in the United States after it renewed an operating license. The cryptocurrency operator announced on Saturday, Aug 4 that it had successfully renewed its Money Transmitter license needed for its operations in the state.
The announcement ended a three year wait for the crypto firm to return to the state after it pulled its services following a regulation that came in effect in 2014. Coinbase at the time released a statement stating the Wyoming Money Transmitter Act which was passed in 2011 and effected in 2014 made it services in the state “impracticable”. Coinbase explained:
“…we understand that the Wyoming Division of Banking interprets the Wyoming Money Transmitter Act to require licensure of entities which offer hosted wallet services, and that as a condition of such licensure, licensees must maintain dedicated fiat currency reserves in amount equal to the aggregate face value of all funds held on behalf of customers”
However, in March Wyoming passed a bill to exempt virtual currencies from the Money Transmitter Act. The bill (HB0019) was one of two blockchain-friendly bills passed by the house in February. The other bill (HB0070) sought to
Coinbase, and other cryptocurrency companies would no longer have to store equal fiat money to back crypto assets held on behalf of Wyoming customers, which was a condition for Transmitter License. With that out of the way, Wyoming Division of Banking promptly approved Coinbase’s money transmitter license.
The exchange recognized the cooperation of members of Wyoming House of Representatives particularly Majority Floor Leader David Miller, Republican State Senator Eli Bebout who sponsored the bill alongside four other Republican senators.
The exchange stated that the renewal of its services in the state will have a positive impact on its economy. “We believe this action by Wyoming will spur innovation and economic activity for individuals, families, and communities across the state,” the statement read.