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Can I collect cryptocurrency information from participants in Washington? What are the requirements?

Cryptocurrency Information Collection Requirements in Washington State

If you plan to collect cryptocurrency information from participants in Washington, you must comply with the requirements outlined in WAAC 460-99C-040 and any other applicable laws and regulations. Additionally, the Washington State Gambling Commission requires that all licensees who accept or receive cryptocurrency as a form of payment must comply with all applicable state and federal laws and regulations, including those related to anti-money laundering and counter-terrorism financing [5.2].

Approval to Conduct Business in Washington

If you plan to conduct business as an association in Washington, you must obtain approval from the state. The approval process requires that you demonstrate to the satisfaction of the director that you and your directors are each of good character and sound financial standing, that your financial history and condition are satisfactory, and that your plan to conduct business in Washington affords a reasonable promise of success [2.1].

Information to be Included in the Application

To obtain approval to conduct business in Washington, you must submit an application that includes at least the following information [2.2]:

  • Name, address, and telephone number of the applicant
  • Name, address, and telephone number of the person to be contacted concerning the application
  • A summary of the applicant’s history, which should include as a minimum the date and place of incorporation, the date and nature of any mergers or acquisitions, and certified current copies of the applicant’s articles of incorporation and bylaws
  • A description of the applicant’s business and corporate structure, including a listing of all branches or similar offices, and each majority owned subsidiary, and the nature and extent of the business activities of each
  • A business plan describing the applicant’s proposed business activities in this state
  • A copy of the independent auditor’s report for the applicant’s most recent fiscal year and comparative financial statements for the prior fiscal year
  • The name, address, professional experience, and financial statement of the chief executive officer and principal operating officers
  • The name, address, and principal occupation of each director of applicant, and completed biographical and financial statements on each
  • A copy of the last two examination reports prepared by the Office of Thrift Supervision, the last two state examination reports, any correspondence from the relevant regulator to the board of directors discussing each report, and the board’s responses thereto
  • A statement as to the presence or absence of any supervisory agreement or regulatory order that may be in effect or may have been in effect in the last five years, and, if so, a copy of each such order or agreement
  • An opinion from the applicant’s state regulatory agency which describes the conditions under which Washington associations may conduct business in such state
  • A statement of total shares outstanding and total number of stockholders if the applicant is a stock association. Additionally, provide a breakdown of stock ownership by officers and directors and any other entities owning five percent or more of the association’s stock
  • A copy of the association’s bond and its riders/attachments
  • Any additional information that may be required by the director or deemed appropriate by the applicant

Conclusion

To collect cryptocurrency information from participants in Washington, you must comply with the requirements outlined in WAAC 460-99C-040 and any other applicable laws and regulations. Additionally, if you plan to conduct business as an association in Washington, you must obtain approval from the state and submit an application that includes the information outlined in WAAC 208-598-020.

Source(s):
Jurisdiction

Washington