Public records showed formation of “blockchain-based limited liability companies,” granted by a bill signed by the governor of Vermont.
“Digital currency limited liability companies”, built on a distributed blockchain network, to pay state taxes in crypto. This was previously reported by Coindesk in January. According to text reviewed by lawmakers back then, those businesses were characterized as “limited liability compan[ies] organized pursuant to this title for the purpose of operating a business that utilizes blockchain technology for a material portion of its business activities.”
With the help of LegiScan, the latest form of the text, when analyzed, showed that the part regarding taxation had been “stripped out” although, sections pertaining to “Fintech Summit” are still available.
According to the document, to set up a blockchain-based company in Vermont applicants must “specify whether the decentralized consensus ledger or database utilized or enabled by the BBLLC will be fully decentralized or partially decentralized and whether such ledger or database will be fully or partially public or private, including the extent of participants’ access to information and read and write permissions with respect to protocols.”
LegiScan showed that Phil Scott, governor of Vermont signed the bill on May 30.
The technology’s use in insurance and banking were the subject of a study called for in the legislation.
The text stated, “the Department of Financial Regulation shall review the potential application of blockchain technology to the provision of insurance and banking and consider areas for potential adoption and any necessary regulatory changes in Vermont.”