New Hampshire Exempts Digital Currency Users from Money Transmission Regulations

On June 2, 2017, the Governor of New Hampshire signed into law a bill that exempts digital currency users from state registration as a Money Transmitter, effective August 1, 2017. Specifically, the bill covers:

"Persons who engage in the business of selling or issuing payment instruments or stored value solely in the form of convertible virtual currency or receive convertible virtual currency for transmission to another location."

This move is in stark contrast with the actions of other states, most notably New York, which passed a dual licensing requirement for virtual currency businesses, the infamous BitLicense.

Virtual currency companies which fit the definition of the New Hampshire bill will no longer be subject to the provisions of RSA 399-G, joining other business models such as "[r]etailers issuing stored value credits or gift cards." RSA 399-G:3. However, such companies will still be subject to RSA 358-A, state regulation of general applicability pertaining to business practices for consumer protection.