Alaska has included virtual currency in the regime of regulation of money transfers

From January 2023, all digital currency companies in the northernmost US state will be required to obtain a separate money transfer license. The Alaska Division of Banking and Securities (DBS) has amended its local administrative code to expand the authority of regulators to control the transfer of any funds, including virtual currency. The amended rules provide that companies involved in the transfer of digital currencies to Alaska, from Alaska or within the state will need to obtain a special license. DBS has adopted an expansive definition of “virtual currency”, defining it as “a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and is not money, whether denominated in money or not”. According to the regulator, virtual currency is an acceptable investment, but only within the limits of the obligations of the licensee for virtual currency to its customers, for example, when it is held on behalf of such customers. The new rules will come into effect in early 2023. Digital currency companies will be required to comply with regulatory requirements if they transfer or hold assets within Alaska. In March, Exxon Mobil Corporation announced plans to expand a pilot program to use surplus natural gas from Alaskan oil wells to power its cryptocurrency mining operations.