When you think of Wyoming, do you think of a state on the cutting edge of cryptocurrency/blockchain tech? If not, you better change your view on Wyoming! A flurry of recent bills in Wyoming demonstrate that Wyoming is positioning itself to be a haven for the cryptocurrency/blockchain industry. A friendly culture for LLCs and corporations combined with a package of proposed legislation that would significantly benefit the cryptocurrency/blockchain industry makes Wyoming very attractive to the cryptocurrency/blockchain industry.
First, Wyoming has always had strict privacy laws regarding LLCs formed in the state. This coupled with a lack of corporate income tax or franchise taxes, already makes Wyoming an attractive haven for the cryptocurrency/blockchain industry. A friendly corporation/LLC environment combined with Wyoming’s strong anti-fraud and consumer protection laws makes Wyoming a strong option for the cryptocurrency/blockchain industry.
Although a company doesn’t need to physically be present in Wyoming to take advantage of its corporation/LLC rules, there are certainly some very compelling reasons for physically locating in Wyoming. At the onset, cheap power and plenty of fiber-optic bandwidth make Wyoming fertile ground for miners! However, Wyoming isn’t stopping there in its efforts to court the cryptocurrency/blockchain industry. There are currently several bills being considered which, if passed, would make Wyoming one of the most cryptocurrency/blockchain friendly states in the union.
HB 0019, the “Bitcoin Bill,” proposes that Wyoming exempt virtual currencies from Wyoming’s money transfer laws. If passed, the Bitcoin Bill will attract new cryptocurrency/blockchain business to Wyoming. This would attract a new and vital new business sector to Wyoming. This bill appears to have the support of many important players in the Wyoming government.
HB 0070 is a plan to exempt utility tokens from Wyoming’s security laws, if the token is not to be used as an investment device and is exchangeable for value (or utility). This forward-thinking bill also exempts people exchanging these tokens from being classified as broker/dealers for purposes of Wyoming’s law. This bill already has at least 12 significant sponsors.
The third bill being considered by Wyoming, which is known as the “Filings Bill” would move the LLC and corporate registration process onto the blockchain. This would memorialize Wyoming’s entire filing and renewal process on the blockchain. Using the blockchain in this way will eventually allow Wyoming to eliminate paper trails associated with the filing and renewal of LLCs and corporations. This is excellent evidence that Wyoming fully embraces the cryptocurrency/blockchain philosophy. It also demonstrates a willingness to embrace the many efficiencies created by the blockchain.
While none of these bills have been enacted yet, they have found strong support in Wyoming’s legislature and business community. More importantly, these bills demonstrate Wyoming’s wish to create a safe haven for the cryptocurrency/blockchain industry. Wyoming’s already corporation/LLC friendly environment coupled with its insight into the emerging cryptocurrency/blockchain industry, means that Wyoming might just be a fertile ground for the cryptocurrency/blockchain industry.
Fornaro Law, with 21 years of experience in representing and providing proper asset protection and corporate structure for its start-up and high value corporate clients, has now applied that knowledge to the world of crypto. Fornaro Law believes that it is critical to evaluate potential changes in the law to add value to our client’s decisions on where to locate their businesses. Further, Fornaro Law wishes to keep its clients advised as to all the latest developments in both the cryptocurrency/blockchain space and the areas most conducive to business.
If you have any questions, please contact us at Fornaro Law!