The Nevada Trade and Labour Commission is analysing a legislative proposal for the creation of some sort of sandbox dedicated to fintech.
An initial analysis was carried out on March 27th. The proposal, SB161, concerns the creation of a State Regulatory Experimentation Program for Product Innovation.
It could enable the country to develop business models with innovative products.
The Fintech Sandbox would change the regulation on the subject of blockchain and new technologies.
As the proposal states, it is “an ACT relating to financial business; requiring the Attorney General to establish and administer the Regulatory Experimentation Program for Product Innovation; setting forth the requirements for the operation of the Program; providing for a temporary exemption from certain statutory and regulatory requirements related to financial products and services for a participant in the Program under certain circumstances; requiring the Attorney General to submit to the Legislature an annual report on the Program; and providing other matters properly relating thereto”.
The proposal in question was made by Senator Kieckhefer and was modelled on the basis of the fintech sandbox previously created in Arizona.
Several companies in the Nevada financial sector have already expressed their support for the proposal: Blockchains LLC, Figure Technologies and Filament.
The proposal would foresee:
“An Act relating to electronic transactions; including a public blockchain as a type of electronic record for the purposes of the Uniform Electronic Transactions Act; providing that a person who uses a public blockchain to secure information does not relinquish any right of ownership related to that information; requiring a governmental agency to accept a certified copy of a record in electronic form under certain circumstances; authorizing the Secretary of State to adopt regulations specifying attributes required to a certified copy of a record in electronic form; prohibiting a local government from taxing or imposing restrictions upon the use of a public blockchain; and providing other matters properly relating thereto”.
Furthermore, the proposal specifies that “certain virtual currencies as a form of intangible personal property for purposes of taxation. An ACT relating to taxation; clarifying that certain virtual currencies are intangible personal property for the purposes of taxation; and providing other matters properly relating thereto”.
That being said, it seems that Nevada wants to encourage the introduction of blockchain technology and cryptocurrencies, allowing an effective regulation which would avoid creating a potentially harmful tool for the whole ecosystem, precisely thanks to the use of a fintech sandbox to test the various tools and understand what and how to improve them.