7 LONG TITLE
8 General Description:
9 This bill enacts provisions related to blockchain technology.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines and clarifies terms related to blockchain technology;
13 ▸ exempts a person who facilitates the creation, exchange, or sale of certain
14 blockchain technology-related products from Title 7, Chapter 25, Money
15 Transmitter Act; and
16 ▸ makes technical changes.
17 Money Appropriated in this Bill:
19 Other Special Clauses:
21 Utah Code Sections Affected:
23 7-25-102, as enacted by Laws of Utah 2015, Chapter 284
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 7-25-102 is amended to read:
27 7-25-102. Definitions.
28 As used in this chapter:
29 (1) "Applicant" means a person filing an application for a license under this chapter.
30 (2) "Authorized agent" means a person designated by the licensee under this chapter to
31 sell or issue payment instruments or engage in the business of transmitting money on behalf of
32 a licensee.
33 (3) "Blockchain" or "blockchain technology" means an electronic method of storing
34 data that is:
35 (a) maintained by consensus of multiple unaffiliated parties;
36 (b) distributed across multiple locations; and
37 (c) mathematically verified.
38 (4) "Blockchain token" means an electronic record that is:
39 (a) recorded on a blockchain; and
40 (b) capable of being traded between persons without an intermediary.
42 committee, executive vice president, treasurer, chief financial officer, or any other person who
43 performs similar functions.
45 is the owner of 20% or more of a class of an applicant's stock.
48 accounting principles, is considered significant to a person's financial health and would be
49 required to be referenced in an annual audited financial statement, report to shareholders, or
50 similar document.
52 or engaging in the business of receiving money for transmission or transmitting money within
53 the United States or to locations abroad by any and all means, including payment instrument,
54 wire, facsimile, or electronic transfer.
55 (b) "Money transmission" does not include a blockchain token.
57 and Registry, authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage loan
60 the licensee that has been sold in the United States directly by the licensee or a payment
61 instrument issued by the licensee that has been sold and reported to the licensee as having been
62 sold by an authorized agent of the licensee in the United States, and that has not yet been paid
63 by or for the licensee.
65 check, or other instrument or written order for the transmission or payment of money, sold or
66 issued to one or more persons, whether or not the instrument is negotiable.
67 (b) "Payment instrument" does not include a credit card voucher, letter of credit, or
68 instrument that is redeemable by the issuer in goods or services.
70 or its representatives authorized to receive the money, or to deposit the money in a depository
71 institution in an account in the name of the licensee.