March 2025 │ Legislation & Regulation Update
PROVIDENCE, RHODE ISLAND — The State of Rhode Island has formally enacted regulations governing the escheatment of virtual currencies under its unclaimed property laws. These regulations outline specific responsibilities for holders of virtual currency assets, establishing clear procedural requirements for their liquidation and remittance to the State.
Key Provisions of Rhode Island’s Virtual Currency Regulations
Liquidation and Remittance Requirement
Under these newly effective regulations, entities holding virtual currency considered dormant or unclaimed must liquidate the digital assets into U.S. currency and remit these proceeds to Rhode Island’s Unclaimed Property Administrator. This must occur no later than thirty (30) days prior to the statutory reporting deadline.
Immunity from Liability
Once holders comply by liquidating virtual currency and transferring the proceeds to the State, Rhode Island law explicitly protects these holders from any subsequent liability regarding potential fluctuation or reduction in asset value.
Regulatory Basis and Implementation
The Rhode Island Unclaimed Property Administrator has statutory authority to accept virtual currencies under provisions relating to “other intangible property,” establishing a clear legal framework for handling digital financial assets as unclaimed property.
Impact and Significance
For Holders
Compliance requires prompt liquidation of virtual currencies ahead of reporting deadlines. Regulatory clarity ensures straightforward guidance, with explicit protections from owner claims after asset remittance.
For Asset Owners
Owners of dormant virtual currencies should be aware that recovered property claims will be settled based on the liquidated cash value, not the original digital tokens.
Broader Regulatory Context
Rhode Island’s decision reflects an emerging regulatory trend nationwide. States continue to clarify unclaimed property laws related to virtual currencies, with varying approaches regarding asset liquidation versus custodial holding in native form.
🔗 Source: Kelmar Associates Regulatory and Legislative Resources