In Maryland, the legal framework surrounding Bitcoin and other cryptocurrencies is influenced by both state and federal regulations. Maryland has not enacted specific legislation solely governing Bitcoin, but several existing laws and regulations may apply to its use and transactions.
- Money Transmission Laws: Businesses dealing with Bitcoin may be subject to Maryland’s money transmission laws. Companies that transmit money, including digital currencies, may need to obtain a money transmitter license from the Maryland Commissioner of Financial Regulation.
- Securities Laws: If Bitcoin or other cryptocurrencies are considered securities, they may fall under the purview of Maryland’s securities laws. This would require compliance with registration and disclosure requirements.
- Consumer Protection Laws: Transactions involving Bitcoin must comply with Maryland’s consumer protection laws, which aim to prevent unfair or deceptive trade practices.
- Taxation: The use of Bitcoin for transactions may have tax implications under Maryland law. Bitcoin transactions are subject to state tax regulations, and individuals or businesses must report and pay taxes on any gains or income derived from Bitcoin.
- Anti-Money Laundering (AML) and Know Your Customer (KYC) Regulations: Businesses involved in Bitcoin transactions must adhere to AML and KYC regulations to prevent money laundering and other illicit activities.
While Maryland has not established a comprehensive legal framework specifically for Bitcoin, these existing laws and regulations provide a basis for its regulation within the state.
In Maryland, there are several laws that could potentially relate to Bitcoin and cryptocurrency, particularly in the context of financial transactions, money transmission, and regulatory compliance. These laws address various aspects of financial institutions, money transmission, and the handling of proceeds from certain activities, which could encompass transactions involving digital assets.
§ 36-1504. Money laundering or monetary transactions involving criminally derived property. specifies that proceeds from transactions involving cannabis businesses or service providers are not considered unlawful solely because they involve cannabis-related activities § 36-1504. Money laundering or
monetary transactions involving criminally derived property..§ 5-623. Proceeds of drug crime. defines “drug crime” and “financial transaction” and prohibits financial transactions intended to promote or conceal proceeds from drug crimes, with certain exceptions for legal representation § 5-623. Proceeds of drug crime..
§ 1-101. Definitions. provides definitions for various terms related to financial institutions, including
“financial transaction”, “monetary instrument”, and “proceeds”, which could be relevant to Bitcoin
transactions § 1-101. Definitions..
§ 12-401. Definitions. defines terms related to secondary mortgage loans, including “lender” and
“licensee”, which may have implications for financial transactions involving Bitcoin § 12-401.
Definitions..
§ 31-103. Applicable statutory provisions; exceptions. outlines the responsibilities of the Exchange and
carriers in holding consumers harmless from adverse consequences related to qualified health plans,
which may indirectly affect financial transactions § 31-103. Applicable statutory provisions;
exceptions..
§ 36-404. Issuing licenses. requires cannabis licensees to comply with the State’s Minority Business
Enterprise Program and outlines procedures for establishing minority business participation goals §
36-404. Issuing licenses..
§ 10-491. Cyber Maryland Program. establishes the Cyber Maryland Board and Fund to support
cybersecurity workforce needs, which could intersect with Bitcoin in the context of cybersecurity § 10-
- Cyber Maryland Program..
§ 15-507. Bonds. addresses financial guarantees for mining activities, including certificates of deposit
and letters of credit, which could be relevant to financial instruments similar to Bitcoin § 15-507.
Bonds..
COMAR 09.03.14.03 specifies that certain persons are not engaging in money transmission when
providing processing, clearing, or settlement services, which could apply to Bitcoin transactions .03
Persons Not Engaging in Money Transmission..
COMAR 09.03.14.01 provides definitions for terms related to money transmission, including
“outstanding money transmission obligations” and “passive investor”, which could be relevant to
Bitcoin .01 Definitions..
COMAR 09.03.14.13 outlines the requirements for authorized delegates in money transmission,
including compliance with state and federal laws, which could impact Bitcoin transactions .13
Authorized Delegates..
COMAR 31.04.10.03 exempts certain securities transactions from specific provisions of the Insurance
Article, which may have implications for Bitcoin as a security .03 Exemption from Insurance Article, §
3-119(e), Annotated Code of Maryland, of Certain Transactions Effected in Connection with a
Distribution..
COMAR 02.02.03.12 provides guidelines for small corporate offering registration, including
disqualifications and registration by qualification, which could be relevant to Bitcoin offerings .12
Small Corporate Offering Registration..
COMAR 03.04.08.03 details the apportionment and allocation of income for banking institutions, which
could affect financial institutions dealing with Bitcoin .03 Apportionment and Allocation..
§ 36-1504. Money laundering or monetary transactions involving criminally derived property. | MD –
Annotated Code of Maryland | Codes | Maryland
§ 5-623. Proceeds of drug crime. | MD – Annotated Code of Maryland | Codes | Maryland
§ 1-101. Definitions. | MD – Annotated Code of Maryland | Codes | Maryland
§ 12-401. Definitions. | MD – Annotated Code of Maryland | Codes | Maryland
§ 31-103. Applicable statutory provisions; exceptions. | MD – Annotated Code of Maryland | Codes | Maryland
§ 36-404. Issuing licenses. | MD – Annotated Code of Maryland | Codes | Maryland
§ 10-491. Cyber Maryland Program. | MD – Annotated Code of Maryland | Codes | Maryland
§ 15-507. Bonds. | MD – Annotated Code of Maryland | Codes | Maryland
.03 Persons Not Engaging in Money Transmission. | MD – Code of Maryland Regulations (COMAR) |
Administrative Codes | Maryland
.01 Definitions. | MD – Code of Maryland Regulations (COMAR) | Administrative Codes | Maryland
.13 Authorized Delegates. | MD – Code of Maryland Regulations (COMAR) | Administrative Codes | Maryland
.03 Exemption from Insurance Article, § 3-119(e), Annotated Code of Maryland, of Certain Transactions
Effected in Connection with a Distribution. | MD – Code of Maryland Regulations (COMAR) | AdministrativeEffected in Connection with a Distribution. | MD – Code of Maryland Regulations (COMAR) | Administrative Codes | Maryland
.12 Small Corporate Offering Registration. | MD – Code of Maryland Regulations (COMAR) |
Administrative Codes | Maryland
.03 Apportionment and Allocation. | MD – Code of Maryland Regulations (COMAR) | Administrative Codes |
Maryland