The state of Louisiana from the United States is likely to start offering licenses to crypto businesses and regulate the industry with a proper legal framework if the new proposal put forth by state representative Mark Weight is approved.
For years, crypto businesses have often been skeptical about offering and expanding their services in the United States, in light of unclear regulations and seemingly hostile stance toward crypto.
Last year, it was reported that despite nationwide launch, Binance US was still unavailable in 13 states in the US, including Washington, New York, Louisiana, and Florida. However, given the surge in cryptocurrency-related developments across the globe, some states have decided to move ahead anyway and start licensing the crypto businesses.
Louisiana warms up to crypto businesses
The move is likely to develop a unique framework for digital currency-related enterprises and offer them guidelines on how to conduct the business legally and seamlessly. This would mean that the crypto businesses would have to fulfill a range of requirements, including biometric identification, approval of the official premises, and undertaking a character and fitness test.
Tough road ahead
Although the eagerly-awaited proposal has received a nod from Louisiana’s House of Representatives, much remains to be done in terms of getting the necessary approvals from other committees such as the State Senate, Consumer Protection, and the Committee of Commerce.
Besides, the bill itself is not low-cost. While the initial implementation is expected to be over $150,000, the total cost is likely to surpass well over $1.3 million in the next five years span.