The US state of Virginia has authorised modifications to its framework for unclaimed property, placing digital assets under state custody regulations and restricting the time at which they can be sold.
House Bill 798 was signed into law by Governor Abigail Spanberger on Monday. The law updates the state’s Disposition of Unclaimed Property Act. It requires custodians of unclaimed cryptocurrency to transfer these assets in their original form instead of converting them into cash.
A minimum one-year holding period before any sale is also mandated by law. According to the bill, “the administrator may subsequently direct such holder of unclaimed digital assets to liquidate the reported but unremitted digital assets at least one year after the report is filed.”
The state lowers the possibility of forced sales at unfavourable prices or during downturns by keeping cryptocurrency in-kind, which may benefit owners who subsequently regain their holdings.
With the bill, Virginia becomes one of an increasing number of states that have incorporated digital assets into their unclaimed property regulations.
Katie Hobbs signed a bill in May of last year that enables Arizona to seize unclaimed cryptocurrency after three years and transfer it to a state-managed reserve fund. Additionally, a bill putting cryptocurrency within the state’s unclaimed property regulations was enacted in California.
The measure also makes it clearer when cryptocurrency accounts are considered abandoned, establishing a five-year period of inactivity unless the owner logs in or completes transactions.
Source: X.com
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