Florida’s Chief Financial officer, Jimmy Patronis has released a statement in which he urges Florida’s lawmakers to create a new governmental post that will be overseeing the state’s cryptocurrency industry.
This initiative dubbed the “Cryptocurrency Oversight initiative” has the support of Florida Senate President-Designate Bill Galvano. The president stated that “ As technology continues to develop, our state needs to be both on the forefront of emerging trends and ahead of the game when it comes to protecting consumers from those who want to scam our residents. I applaud CFO Patronis for putting innovative proposals forward and will work with him on any forthcoming policy changes.”
Mr. Patronis said: “Florida can no longer remain on the sidelines when it comes to cryptocurrency. I have directed my office to create a position that will oversee how current securities and insurance laws apply to Initial Coin Offerings (ICOs) and cryptocurrencies as well as shape the future of these regulations in our state.”
He continued by saying, “ICO and cryptocurrency companies based in Florida will also be required to register with the Office of Financial Regulation (OFR) under the supervision of the cryptocurrency chief. The new position will coordinate the efforts of OFR and the Office of Insurance Regulation (OIR) regarding the development of policy, legislation, and regulation.”
According to Mr. Patronis, there has to be a “comprehensive and balanced” regulatory framework that will emphasize the need to protect citizens from malicious actors that will want to use distributed ledger technology.
Mr. Patronis said, “We cannot allow the cryptocurrency industry to expand in Florida unfettered and unchecked with the potential for so many, including our large population of seniors, to be exploited. By taking an active, comprehensive and balanced approach, our state will provide an appropriate level of scrutiny for emerging digital asset technologies. It is absolutely essential that Florida create safeguards to protect our consumers from fraud.”
He added that “The Alabama Securities Commission recently sent a cease and desist order to Platinum Coin from Miami to prohibit the company from issuing securities within Alabama. Other states have identified and are taking action against bad actors in the cryptocurrency industry. Florida must also protect our residents. […] The establishment of a cryptocurrency chief in the state will help protect Floridians from scams. Understanding the risks and benefits of this emerging industry will benefit Florida consumers. My goal is to keep pace with demand and not deter innovation while monitoring for fraudulent behavior and scams.”