Pennsylvania HB883 mandates collateral requirements and fund segregation for virtual currency lenders, with penalties for non-compliance.
Pennsylvania HB883, known as the Digital Asset Regulation Act, requires virtual currency lenders to hold collateral for digital consumer assets and segregate client funds from their own. Lenders must notify the Department of Banking and Securities 90 days before operating in the state. Penalties include fines of $5,000 for the first violation, $10,000 for the second, and $20,000 for the third and subsequent violations. After three violations, the department may prohibit the lender from operating in Pennsylvania. The act takes effect in 60 days.
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