Recognizing the growing use of crypto payments throughout the US state, Florida is to get its own crypto chief. The new role, a state-wide cryptocurrency chief, will manage, regulate and provide oversight on cryptocurrencies and follows news earlier this month of the SEC creating a similar role.
All ICOs and cryptocurrency companies will be under the supervision of the new crypto chief and will have to register with the Office of Financial Regulation (OFR). The new role will bring the OFR and the Office of Insurance Regulation (OIR) in order to make combined regulation and oversight.
Florida Chief Financial Officer Jimmy Patronis said in a statement that the creation of this role will ensure that Florida will not remain on the sidelines for this new technology. He said:
“I have directed my office to create a position that will oversee how current securities and insurance laws apply to ICOs and cryptocurrencies as well as shape the future of these regulations in our state.”
The new crypto chief will also help protect citizens from scams by driving greater awareness of the industry. Local regulators will also be able to provide a faster response time to fraudulent behavior. He was keen to point out that the move will not ‘deter innovation’.
“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.”
On June 6, the SEC appointed a crypto chief to advise on issues surrounding blockchain technology. Valerie Szczepanik was named as the associate director of the Division of Corporation Finance and senior adviser for Digital Assets and Innovation. She will make sure that the SEC is clear over how securities law applies to digital currencies and will coordinate efforts across departments.