The U.S. State of Washington will recognize blockchain records as valid and enforceable. The state has passed a new bill that recognizes and protects these legal records based on distributed ledger technology (DLT). The Senate Bill 5638 was signed by Governor Jay Inslee on April 26.
Blockchain Records Officially Recognized
This bill was presented for the first time back on January 25, 2019. A few days ago, the bill was approved by 96-1 and it will go into effect in July this year. This law is very important for the state because it would not make differences between electronic and paper records. Some of these electronic records can be held in a blockchain, which is very effective for companies that deal with a lot of paperwork.
The new bill reads as follows:
“An electronic record may not be denied legal effect, validity, or enforceability solely because it is generated, communicated, received, or stored using distributed ledger technology.”
Moreover, the bill has also provided information about specific definitions such as what blockchain is and how a distributed ledger network works. This is not the first time that jurisdictions create clear and friendly regulations for blockchain and cryptocurrencies.
For example, the Tennessee legislature decided to make a similar move back in March 2018. Governor Bill Haslam signed a bill in which they recognize blockchain technology and smart contracts to process transactions. There are several companies such as banks and financial firms that are currently using different blockchain systems in order to process transactions and send and receive other digital assets.
Wyoming, for example, has created a very friendly regulatory framework for virtual companies and firms operating in the space. This is positive for the whole cryptocurrency space because other states and jurisdictions will try to compete for companies trying to find welcoming places for their operations.
Malta and Switzerland are two of the most popular destinations for companies to operate. One of the largest cryptocurrency exchanges around the world, Binance, decided to settle its operations in the European Island of Malta and start operating from there.
Japan has also created very clear regulations for companies to follow and to take care of investors. There have been several hacks and attacks that affected many individuals and investors around the world. China and India are imposing very hard regulations for virtual currencies not to be able to spread and expand.
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