Dauphin News

Senator Chris Gebhard's bill aimed at safeguarding virtual currency users has been unanimously approved by the Senate. The legislation mandates that the transmission of virtual currency be treated similarly to money transmission under the Money Transmitter Act (MTA).

Technological progress is reshaping various societal facets, including banking and commerce, with millions in Pennsylvania opting for virtual currencies. Establishing a legal framework is seen as a crucial step towards legitimizing these digital currencies.

The bill includes amendments targeting money transmitting services that charge fees to consumers. Virtual currency wallets owned by individual consumers remain unaffected by this legislation.

Gebhard noted the increasing use of virtual currencies such as Bitcoin and Ethereum, emphasizing, "As more citizens use virtual currencies, like Bitcoin and Ethereum, the criminal element has increasingly focused on using this platform to evade prosecution."

If enacted, this bill would extend the provisions of Act 41 of 2024 and introduce the first statutory regulation for consumer protection in Pennsylvania's virtual currency market. Currently, 27 states have similar regulations under their money transmitter acts.

Gebhard explained further, "By treating virtual currencies the same as traditional money under the MTA, my bill would give law enforcement the ability to prosecute scammers, fraudsters and organized crime – or bad actors such as FTX Trading Ltd."