Uniform Law Commission Approves Model Law Regulating Virtual Currency Business Activities

In July 2017, the Uniform Law Commission (“ULC”) adopted the Uniform Regulation of Virtual-Currency Businesses Act (“VCB Act”) to provide a statutory framework for the regulation of virtual currency activity. Since the creation of the first virtual currency in 2008, governments have struggled to determine an appropriate regulatory approach. Within the United States alone there is a material divide between states that believe virtual currency transactions should be heavily regulated and those that worry a burdensome regulatory approach might stifle innovation. Against this background, the ULC drafted the VCB Act in an attempt to balance these competing interests.