Louisiana Revised Statutes 6:1388 – Renewal of license; procedure; denial
Terms Used In Louisiana Revised Statutes 6:1388
- Applicant: means a person who applies for a license pursuant to this Chapter. See Louisiana Revised Statutes 6:1382
- Commissioner: means the commissioner of the office of financial institutions. See Louisiana Revised Statutes 6:1382
- Control: when used in the context described, means the following:
(a) When used in reference to a transaction or relationship involving virtual currency, power to execute unilaterally or prevent indefinitely a virtual currency transaction. See Louisiana Revised Statutes 6:1382
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Exchange: when used as a verb, means to assume control of virtual currency from, or on behalf of, a resident, at least momentarily, to sell, trade, or convert either of the following:
(a) Virtual currency for legal tender, bank credit, or one or more forms of virtual currency. See Louisiana Revised Statutes 6:1382
- Licensee: means a person licensed pursuant to this Chapter. See Louisiana Revised Statutes 6:1382
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Office: means the office of financial institutions. See Louisiana Revised Statutes 6:1382
- Person: means an individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation, or other legal entity, or any individual or group of individuals, however organized. See Louisiana Revised Statutes 6:1382
- Resident: means any of the following:
(i) A person who is domiciled in this state. See Louisiana Revised Statutes 6:1382
- Responsible individual: means any individual who is ultimately responsible for establishing or directing policies and procedures of the licensee, including but not limited to an executive officer, manager, director, or trustee. See Louisiana Revised Statutes 6:1382
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Louisiana Revised Statutes 6:1382
- Transfer: means to assume control of virtual currency from, or on behalf of, a resident and do any of the following:
(a) Credit the virtual currency to the account of another person. See Louisiana Revised Statutes 6:1382
- United States dollar equivalent of virtual currency: means the equivalent value of a particular virtual currency in United States dollars shown on a virtual currency exchange based in the United States for a particular date or period specified in this Chapter. See Louisiana Revised Statutes 6:1382
- Virtual currency: means a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender. See Louisiana Revised Statutes 6:1382
- Virtual currency business activity: means any of the following:
(a) Exchanging, transferring, or storing virtual currency or engaging in virtual currency administration, whether directly or through an agreement with a virtual currency control services vendor. See Louisiana Revised Statutes 6:1382
A. (1) Each person licensed as a virtual currency business activity licensee shall submit an annual license renewal application on or before December thirty-first of each year in a manner and form prescribed by the commissioner and submit to the commissioner a renewal report pursuant to Subsection C of this Section if the person is not issued a new license from November first to December thirty-first of that year. A virtual currency business activity license issued during this time period will expire on December thirty-first of the following calendar year.
(2) An annual renewal application shall be accompanied by the required annual license renewal and investigation fees pursuant to the rules and regulations promulgated by the commissioner, as required pursuant to Subsection F of this Section. An annual license renewal application submitted after December thirty-first and before March first of the following year shall be charged an annual license renewal late fee pursuant to the rules and regulations promulgated by the commissioner, in addition to the annual license renewal and investigation fees.
B.(1) An annual licensee renewal application that is timely submitted on or before the license expiration date shall remain in force and effect until such application is approved or denied by the commissioner. Nothing in this Section shall preclude the commissioner from implementing any administrative or enforcement action authorized by this Title for violations of this Chapter or for material misrepresentation that may have occurred prior to the renewal date of a license.
(2) If the renewal application is submitted timely on or before December thirty-first, the license shall remain in force and effect until the renewal application is either approved or denied by the commissioner. Nothing in this Paragraph shall preclude the commissioner from implementing any administrative or enforcement action authorized by this Title for violations of this Chapter or for any material representation that may have occurred prior to the renewal date of a license.
(3) If the commissioner has not received the renewal fee and late fee before March first, the license to engage in virtual currency business activities shall expire without hearing or notification, and the license shall not be reinstated. However, the person whose license has expired may apply for a new license, subject to all new license application requirements of this Chapter. Prior to such application being complete and eligible for approval consideration, the applicant shall be subject to and pay unlicensed activity civil money penalties in an amount determined by the commissioner.
C.(1) The renewal report required by Subsection A of this Section shall be submitted in a form and medium prescribed by the office.
(2) The report shall contain all of the following:
(a) A copy of the licensee’s audited annual financial statement.
(b) If a person other than an individual has control of the licensee, a copy of either of the following:
(i) The person’s current annual financial statement.
(ii) The person’s current audited consolidated annual financial statement.
(c) A description of any of the following:
(i) Material change in the financial condition of the licensee.
(ii) Material litigation involving the licensee or a responsible individual of the licensee.
(iii) License suspension or revocation proceeding commenced, or other action taken, involving a license to conduct virtual currency business activity issued by another state.
(iv) Federal or state investigation involving the licensee.
(v) Data security breach involving the licensee.
(d) The number of virtual currency business activity transactions with, or on behalf of, residents as of December thirty-first of the preceding calendar year and as of September thirtieth of the current year.
(e)(i) The amount of United States dollar equivalent of virtual currency in the control of the licensee as of December thirty-first of the preceding calendar year and as of September thirtieth of the current year.
(ii) The total number of residents for whom the licensee had control of United States dollar equivalent of virtual currency as of December thirty-first of the preceding calendar year and as of September thirtieth of the current year.
(f) Evidence that the licensee continues to satisfy the requirements provided for in La. Rev. Stat. 6:1386.
(g) A list of each location where the licensee operates its virtual currency business activity.
(h) The name, United States Postal Service address, and telephone number of each person that manages a server used by the licensee in conducting its virtual currency business activity with or on behalf of a resident.
D. In addition to the provisions of Paragraph (B)(3) of this Section, if a licensee does not timely comply with Subsection A of this Section, the office may use any enforcement action provided for in La. Rev. Stat. 6:1392.
E. Expiration of a license pursuant to the provisions of this Section shall not invalidate a transfer or exchange of virtual currency for, or on behalf of, a resident made during such expiration and shall not insulate the licensee from liability pursuant to the provisions of this Chapter, nor from other enforcement action as provided for in Subsection D of this Section.
F. A licensee shall pay the reasonable and necessary costs of the office’s investigation in accordance with this Section.
Acts 2020, No. 341, §1; Acts 2023, No. 331, §1, eff. June 13, 2023.
NOTE: The provisions of Acts 2023, No. 331, will terminate on July 1, 2025.