A new position in Florida: the state creates a "crypto" position to monitor and regulate cryptocurrencies
The state of Florida will hire a cryptocurrency specialist to manage and closely regulate the technology in the state. The announcement is directly related to the appointment by the Securities and Exchange Commission of the United States (SEC) of a cryptocurrency chief earlier this month.
The Chief Financial Officer (CFO) of Florida, Jimmy Patronis, issued a statement this June 27 indicating that the post of "Cryptographic Tsar" is being created in order to provide supervision over cryptocurrencies. Recognizing, apparently, the growing use of digital currencies as a means of commercial exchange, Patronis said that Florida should not remain on the sidelines of this new technology.
In his own words :
"I have ordered my office to create a position that monitors how current securities and insurance laws apply to Initial Currency Offers (ICOs) and cryptocurrencies, as well as shape the future of these regulations in our state."
Any ICO to be made, or company that issues its own cryptocurrencies will also be under the supervision of the new official, and will have to register with the Office of Financial Regulation (OFR). The newly created position will involve collaboration between the OFR and the Office of Insurance Regulation (OIR) in the work of regulation and supervision on the subject.
The increase in the use of cryptocurrencies was also part of the reason for creating the new role. Patronis highlighted the way in which companies and governments are using virtual currency technology in their operations and businesses. Earlier, in February, the Arizona state senate passed a bill that will allow citizens to pay their taxes with Bitcoin.
"Cryptocurrencies are increasingly accepted as payment methods for many transactions throughout the state, including by government entities. The Seminole County tax collector announced that the office will accept Bitcoin as payment for property taxes, identification cards and license plates, "said Patronis.
In the light of recent frauds exposed, such as Centra (sponsor of boxer Floyd Mayweather), and the SEC creating a fake ICO to warn investors about the risks, Patronis pointed out the dangers of being scammed.
He said that the Crypto Czar will help protect citizens from these crimes. Through greater awareness of the problems, local regulators will be able to provide a faster response time to fraudulent behavior. He was also emphatic in stating that he will not "stop the innovation".
Patronis stated :
"We can not allow the cryptocurrency industry to expand in the state of Florida without restrictions and without control, with the potential for many, including our large population of older people, to be deceived in their good faith. By adopting an active, comprehensive and balanced approach, our state will provide an adequate level of scrutiny for emerging digital asset technologies. "
On June 6, the SEC appointed a chief of cryptographic assets to advise on issues related to Blockchain technology. Valerie Szczepanik was appointed associate director of the Corporate Finance Division and principal advisor of Digital Assets and Innovation.
Szczepanik will be responsible for ensuring that the SEC has clarity on how the securities law applies to digital currencies and how to coordinate efforts between departments.