New York State has announced that it will impose a $10,000 fine on anyone who buys or sells digital tokens of bitcoin, another cryptocurrency that has become popular with people in the state.
“This is not a bill to penalize cryptocurrency users, but rather a measure to protect the public from unscrupulous and predatory businesses that exploit the trust of the public,” Governor Andrew Cuomo said in a statement on Monday.
The law, which will be enforced in New York City, requires businesses to keep records of their transactions.
The announcement comes as the US continues to see a rise in the use of cryptocurrencies.
“It is important that people understand that these products are not securities,” New York Attorney General Eric Schneiderman said in February.
“They are a tool for commerce.
It’s a great tool for those who need to pay for something, or for those looking to protect themselves.”
The new law also aims to reduce the potential for money laundering, and make it easier for businesses to comply with new financial regulations.
It also requires companies to register with the state in the event they become involved in criminal activity.