United States of America: Implemented Act Concerning Digital Assets (HB 6752)

On 1 October 2023, the Connecticut Act Concerning Digital Assets (HB 6752) entered into force. The Act authorises the Banking Commissioner to adopt, amend and rescind regulations, forms and orders governing the business use of digital assets. Further, the Act provides definitions for "virtual currency address", "virtual currency kiosk" and "virtual currency wallet". Finally, the Act establishes specific requirements applicable to owners or operators of virtual currency kiosks including the provision to consumers of a clear and easily noticeable written disclosure in English regarding the significant risks associated with virtual currencies. Specifically, consumers should be clearly warned that losses resulting from fraudulent or accidental transactions may not be recoverable, about the irreversibility of virtual currency transactions, and the increased risk of fraud or cyber-attacks associated with virtual currency.