Governor sign bill to pave way for Blockchain companies

Vermont’s governor has signed a bill allowing for the creation of so-called “blockchain-based limited liability companies,” public records show.

The most recent version of the report, according to LegiScan, shows that the language related to taxation has been stripped out, though it still contains sections regarding the limited liability companies as well as mandates for a “Fintech Summit” and a follow-up study of backing up public records using the tech (an earlier review ultimately deemed the use case too costly).

Among the requirements for setting up a blockchain-based company in Vermont: applicants must “specify whether the decentralized consensus ledger or database utilized or enabled by the BBLLC will be fully decentralized or partially decentralized and whether such ledger or database will be fully or partially public or private, including the extent of participants’ access to information and read and write permissions with respect to protocols.”

Vermont governor Phil Scott signed the bill on May 30, LegiScan reveals.

The newly-signed law also calls for a study – due before January 15 of next year – into the tech’s use in insurance and banking and how state officials can clear the way for such applications within the state’s economy.

“The Department of Financial Regulation shall review the potential application of blockchain technology to the provision of insurance and banking and consider areas for potential adoption and any necessary regulatory changes in Vermont,” the text states.

Investment Firm Gearing Toward Cryptocurrency Exchange

US investment giant Fidelity Investments is hiring developers to build a cryptocurrency exchange, reports claim June 6 citing internal correspondence.

Fidelity, with its $2.45 trln under management, has allowed clients to hold Bitcoin alongside traditional assets, and is now reportedly circulating job offers related to building a “digital asset exchange.”

Specifically, executives notified employees the firm is looking for a DevOps System Engineer “to help engineer, create and deploy a Digital Asset exchange to both a public and private cloud,” according to Business Insider quoting the circular.

The move makes Fidelity one of an ever-increasing number of financial industry entities looking to increase direct interaction with cryptocurrency.

Last month, global heavyweight Goldman Sachs revealed it had a similar roadmap for clients.

Fidelity meanwhile will in future seek to offer “first-in-class custodian services for Bitcoin and other digital currencies,” according to an additional job offer.

The company’s CEO Abigail Johnson has been an outspoken supporter of Bitcoin for several years, but along with other officials has so far declined to comment on the new initiatives, Business Insider reports.

Crypto Exchange Set Up Bank Account

Binance is currently the world’s largest crypto exchange with $1.47 bln in trade volume, has set up a bank account in Malta. This move brings the exchange one step closer to its plans to offer fiat-to-crypto deposits and withdrawals on its platform, a feature that would further improve the exchange’s liquidity and facilitate new investors entering the space with fiat purchases.

Its CEO, described the new bank account as a “very significant” development since the exchange first disclosed it was relocating its headquarters to the island. Malta is fast establishing itself as a haven for blockchain companies, given its robust and transparent crypto regulatory climate. He hoped fiat-crypto trading on Binance would launch in Malta “within the year,” also indicating plans to offer the service in Uganda and potentially Asia as well.

More broadly, the CEO reflected on Binance’s progress in Malta, which he affirmed is going “very well,” revealing that the company is also in talks with Malta’s traditional equities stock exchange about a possible future collaboration.

Malta is considered “one of the best places” for blockchain firms by the CEO and it is deserving of its ‘Blockchain Island’ nickname given the “very welcoming and reasonable” stance of local regulators towards the crypto sphere. He noted that “a few dozen” blockchain companies have already established themselves on the island since late March alone.

When it comes to fictional crypto-paradisal islands, however, CZ dismissed the outlandish sci-fi-esque rumors that Binance had allegedly bought a private island that it hoped to nurture into a blockchain-powered microstate.

Binance is now working on developing a decentralized exchange, which is currently a big, “high priority” project according to the CEO.

Just last week, Binance revealed its plans to create a major $1 bln cryptocurrency-based fund to support blockchain and crypto startups, seeking a total of twenty ‘heavyweight‘ partners for the project, each of which is required to have at least $100 mln under asset management.