NH House Introduces Bill to Exempt Certain Users of VC From The Money Transmitter Licensing Requirements

On January 8, 2015, New Hampshire House Bill 356 was introduced, proposing to exempt persons using private virtual currencies for internet commerce from the licensing requirements for money transmitters.  H.B. 356 would define “virtual currency” to mean ” any type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology.”  H.B. 356 further provides that “[v]irtual currency shall be broadly construed to include digital units of exchange that:  (1) Have a centralized repository or administrator; (2) Are decentralized and have no centralized repository or administrator; or (3) May be created or obtained by computing or manufacturing effort.”  However, virtual currency would not include “digital units that are used solely within online gaming platforms with no market or application outside of those gaming platforms, nor shall virtual currency be construed to include digital units that are used exclusively as part of a customer affinity or rewards program, or can be applied solely as payment for purchases with the insurer or other designated merchants, but cannot be converted into, or redeemed of, fiat currency.”