Connecticut prohibits encryption in the Ministry of Governmental Treasury

Connecticut has taken a bold step to stay away from the involvement of cryptocurrencies by passing the 7082 home law unanimously, now known as Public Law No. 25-66.

This represents the most expansionist embargo at the state level on governmental activity related to encryption.

Connecticut closes the door on state -backed encryption projects

the New law All governmental and municipal bodies are prevented from establishing encrypted currency reserves or accepting digital assets such as paying taxes, fees, or any financial obligations. This complete procedure stops any future encryption projects supported in Connecticut.

In addition to an investment ban, legislation determines strict protection for consumers for virtual currency service providers.

The companies participating in the transfer of funds must offer warnings that the transactions are irreversible and that the losses caused by fraud or errors may be non -refundable. They must also detect all the physical risks of customers and verify the identity of users under the age of 18.

The legislation also reviews the broader financial supervision laws in the state and provides new definitions that surround the terms of the main digital financing such as digital portfolios, kiosks and control of persons. Moreover, it compels licensed encryption work in Connecticut to implement reinforced compliance programs that meet the standards of the new country.

This extremist position contradicts sharply with the increasing number of countries that follow the activity of the adoption of digital assets. Bitcoin’s laws reveal that 31 states are currently studying bitcoin reserve bills. Of them, 16 have advanced while rejecting 8 similar measures. While some of this rejection may still be reviewed, Connecticut’s legislation is important for its restrictions and resolutions.

First in the nation

Last month, New Hampshire officially became the first American state to establish a strategic bitcoin reserve. On May 6, Governor Kelly Ayot signed the House of Representatives Law 302 in the law, which allowed the Ministry of Treasury to invest up to 5 % of its money in Bitcoin and other digital assets of more than $ 500 billion. Currently, Bitcoin is only qualified.

The law, which is inspired by the framework of the Satoshi Action policy, requires a safe nursery and the regulation of the United States and aims to diversify reserves while supporting financial responsibility.