If you are trading virtual currencies such as bitcoin in the state of Washington, there are new rules you will have to adhere to as of next month. Virtual currency operators in Washington need to comply with new money transmitter laws starting 23rd July.
Operators who store virtual currency are now also required to provide a third-party security audit of their data systems as a part of their licensing. Virtual currency licensees need to make a special list of disclosures to their clients, which are included in the newly added Section 21 (2) of the bill. They must:
Clarify whether their products are insured and guaranteed for
Detail their liabilities
Note that transfers are irrevocable
Provide a list of fees and charges.
All money transmitters also need to comply with a new rule regarding license and trade names. If they a
name is similar to an existing one, licensure can be denied.