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Author: Admin | 2025-04-28
Last Updated on May 31, 2023 by Florida’s Governor Ron DeSantis signed new cryptocurrency legislation on May 12, 2022. The new law provides a legal definition of what virtual currency is, amends Florida’s financial regulations related to money service businesses (MSBs), while ultimately reducing restrictions on Florida’s crypto industry. The new Florida cryptocurrency bill will become effective on January 1, 2023. Virtual Currency Definition The new crypto bill signed by Governor DeSantis introduces a definition for the term “virtual currency”. The definition states that virtual currency is “a medium of exchange in electronic or digital format that is not currency”. There are two important exclusions from the definition of virtual currency that relate to utility tokens which are crypto currencies that have a use only within a specific ecosystem. The first exclusion is that tokens “issued by or on behalf of a publisher and used solely within an online game, game platform, or family of games sold by the same publisher or offered on the same game platform” are not virtual currency. The second exclusion is for tokens that are “used exclusively as part of a consumer affinity or rewards program and can be applied solely as payment for purchases with the issuer or other designated merchants but cannot be converted into or redeemed for currency or another medium of exchange.” Most popular crypto currencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE) and Shiba Inu (SHIB) as well as stablecoins such as Tether (USDT) and USD Coin (USDC) will fall under the definition of cryptocurrency and therefore businesses offering these products to the public will be treated as Money Service Business (MSBs) for regulatory purposes. There will be limited compliance requirements for businesses offering game and/or customers rewards utility tokens. Utility tokens are used for earning rewards
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