§ 4-11-105 — Control of virtual currency

(a) A person has "control" of a virtual currency if the following conditions are met: (1) the virtual currency or the system in which it is recorded, if any, gives the person: (A) the power to derive substantially all the benefit from the virtual currency; (B) subject to subsection (b), the exclusive power to prevent others from deriving substantially all the benefit from the virtual currency; and (C) subject to subsection (b), the exclusive power to transfer control of the virtual currency to another person or cause another person to obtain control of a virtual currency that derives from the virtual currency; and (2) the virtual currency, a record attached to or logically associated with the virtual currency, or the system in which the virtual currency is recorded, if any, enables the person to readily identify itself as having the powers specified in subparagraph (a)(1). (b) A power specified in subparagraph (a)(1)(B) or (a)(1)(C) can be exclusive, even if: (1) the virtual currency or the system in which it is recorded, if any, limits the use to which the virtual currency may be put or has protocols that are programmed to result in a transfer of control; and (2) the person has agreed to share the power with another person. (c) For the purposes of subparagraph (a)(2), a person may be identified in any way, including by name, identifying number, cryptographic key, office, or account number.

Legislative History

Added by Act 2021, No. 1078,§ 7, eff. 7/28/2021.