A draft draft recently proposed by the Illinois state legislature to add virtual currencies to the list of assets that could be considered abandoned (abandoned). The bill was first introduced on February 20 and sent to the Finance & Housing Revenue Commission (House Revenue & Finance Committee) on March 12.
The draft revised some aspects of the Illinois Unclaimed Property Act, specifically adding two terms relating to virtual currencies – a legal term for cryptocurrencies and cryptocurrencies. Other properties have similar features.
The law stipulates all manners of properties considered to be abandoned by their original owners. Among others, they may include real estate, safe deposit boxes, money orders and securities.
Bitcoin has no head, so it is also considered an abandoned property.
When a property is deemed unknown, the state is obligated to try to contact its final owner. If that fails, the state treasurer can claim his property – essentially get it back.
This law is primarily intended for properties held by third parties, such as banks. The confiscation process allows supervisors to recover any fees they may have accumulated that were not paid by the original owner.
New cryptocurrency terms
The revised bill specifies exactly how to handle cryptocurrencies according to the law.
The term for supposedly abandoned cryptocurrency assets is defined as 5 years after the last sign of interest.
An indication of interest is a legal term that includes any type of interaction between the supervisor and the owner of the property. For example, withdrawing parts of an asset or conveying change contact information.
The 5-year term seems to be relatively generous, since many other assets can be considered abandoned after 3 years.
One notable aspect of the bill is that the government will not directly own the cryptocurrency collected in this way. The property must be liquidated by the owner – the legal term for supervisors. As stated on the invoice:
The holder will liquidate the virtual currency and transfer money to the administrator. The liquidation will take place at any time within 30 days before submitting the report under Section 15-401.
After the liquidation, the original owner loses the right to revoke any interest in the value of the property.
Cryptocurrency provisions seem to be strictly targeted for cryptocurrency custody businesses, since direct confiscation of cryptocurrencies is largely impossible. If the bill passes, cryptocurrency depository operators in Illinois will receive clear instructions for an important business procedure.
However, there is no large cryptocurrency manager based in Illinois. The Chicago Mercantile Exchange (CME) provides Bitcoin derivatives (BTC) derivatives to institutional clients but has not expanded to direct scrutiny – at least for now. Coinbase is the largest custodian exchange service in the United States but based in San Francisco.
According to Cointelegraph
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