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Canadian Blockchain Startup Expands Into Crypto-Friendly Wyoming

Last Updated September 23, 2020 12:03 PM
Gerelyn Terzo
Last Updated September 23, 2020 12:03 PM

Nova Scotia-based BlockCrushr is expanding into the lower 48. The blockchain startup has chosen Wyoming for its new corporate subsidiary amid the state’s openness to both the technology and cryptocurrencies, as evidenced by pending legislation. BlockCrushr Wyoming’s presence ahead of the state Legislature’s ruling suggests the startup is confident about the prospects of the policy.

Wyoming is currently entertaining several blockchain-related proposed policies, including Bill HB0070 , which supports a digital token issued on an open blockchain that’s not subject to securities and money transmission regulations as long as it meets a set of criteria. It’s unclear what the SEC would have to say about it.

“Wyoming is one of the best places in the U.S. to do business. Between low startup costs, the most business-friendly tax system in the country, and lawmakers who are focused on supporting and fostering the growth of innovative fintech business and technology, Wyoming just makes sense,” said BlockCrushr Labs chief Scott Burke

Bill HB0070 would be a boon to BlockCrushr Wyoming, as the startup is behind TokenClub, which they describe as a monthly service for “the hottest ICOs” that are sent to a subscriber’s Ethereum wallet. The user sets a spending cap, and TokenClub fills their basket with what they have vetted to be the top tokens that month. As examples, the following projects would meet their criteria : “Civic, FileCoin, Golem, and Kik.”

December’s tokens were as follows –

BlockCrushr Wyoming is in the process of being incorporated and is located in Cheyenne-based coworking space The Second Floor @ the Paramount.

Wyoming is among US states jockeying for position in fintech, with the Wyoming Blockchain Commission — of which Overstock’s Patrick Byrne is an advisor — leading the charge. The commission is designed to promote blockchain technology in Wyoming, touting the distributed ledger tech’s benefits, such as slashing costs, improving efficiency as well as stimulating the formation of new businesses.

House Bill 0070

As for the open blockchain exemption bill that was introduced in January, it’s being sponsored by a trio of lawmakers. It suggests that tokens would not be characterized as securities if they meet the following criteria –

  • they aren’t marketed to the public as investments
  • users of the token can exchange it for goods or services, which most token-fueled blockchain startups should qualify for
  • there are no repurchase agreements involved
  • the token issuer must not be a broker-dealer or in any way deal in securities

At present, it seems upcoming ICOs are using trial and error to determine whether or not their tokens fit as a utility or a security, most often settling on the former. Policymakers are looking to enact the bill in July 2018.

Featured image from Shutterstock.