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Can I offer a cryptocurrency as a form of payment without violating financial regulations in Washington? What are the requirements?

To offer a cryptocurrency as a form of payment in Washington, you may need to comply with the requirements of the crowdfunding exemption in RCW 21.20.880 [2.1]. Issuers seeking to rely on this exemption shall file a properly completed Washington Crowdfunding Form and the following documents with the division: the filing fee, the issuer’s articles of incorporation or other charter documents, the issuer’s bylaws or operating agreement, a copy of any resolutions by directors setting forth terms and provisions of capital stock to be issued or by managing members setting forth terms and or capital ownership interest to be issued, the issuer’s financial statements, a copy of any agreements between the issuer and any broker-dealer or other intermediary, a copy of the escrow agreement between the issuer and an escrow agent located in the state of Washington in which offering proceeds will be deposited, a copy of any subscription agreement for the purchase of securities in this offering, a specimen or copy of the security to be offered, or other document evidencing the security, including required legends, if the issuer will issue physical certificates, a copy of all advertising and other materials directed to or to be furnished to investors in this offering, and any other document reasonably requested by the director [2.1].

The issuer must also enter into an escrow agreement with an independent escrow agent, as defined in WAC 460-99C-020, located in the state of Washington that includes specific terms [2.2]. The issuer shall furnish to prospective investors, at a reasonable time prior to the sale of securities in reliance on the crowdfunding exemption in RCW 21.20.880, the most recent Washington Crowdfunding Form declared exempt by the director, including all required exhibits thereto [2.4]. Securities issued in reliance on the crowdfunding exemption in RCW 21.20.880 may not be transferred by the purchaser during a one-year period beginning on the date of purchase, unless certain conditions are met [2.6].

It is important to note that the documents provided do not specifically address the use of cryptocurrency as a form of payment. Therefore, it is recommended that you consult with a legal professional to ensure compliance with all applicable regulations.

Source(s):
Jurisdiction

Washington