North Dakota Code 13-09.1-45 – Scope
1. This chapter does not apply to the exchange, transfer, or storage of virtual currency or to virtual-currency administration to the extent the Electronic Fund Transfer Act of 1978 [15 U.S.C. Sections 1693-1693r], the Securities Exchange Act of 1934 [15 U.S.C.
Terms Used In North Dakota Code 13-09.1-45
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49
Sections 78a-78oo], the Commodities Exchange Act of 1936 [7 U.S.C. Sections 1-27f], or chapter 10-04 govern the activity.
2. Sections 13-09.1-44 through 13-09.1-49 do not apply to activity by:
a. A person that:
(1) Contributes only connectivity software or computing power to a decentralized virtual currency, or to a protocol governing transfer of the digital representation of value; (2) Provides only data storage or security services for a business engaged in virtual-currency business activity and does not otherwise engage in virtual- currency business activity on behalf of another person; or
(3) Provides only to a person otherwise exempt from this chapter virtual currency as one or more enterprise solutions used solely among each other and has no agreement or relationship with a person that is an end-user of virtual currency; b. A person using virtual currency, including creating, investing, buying or selling, or obtaining virtual currency as payment for the purchase or sale of goods or services, solely:
(1) On its own behalf; (2) For personal, family, or household purposes; or
(3) For academic purposes; c. A person whose virtual-currency business activity with or on behalf of persons is reasonably expected to be valued, in the aggregate, on an annual basis at five thousand dollars or less, measured by the United States dollar equivalent of virtual currency; d. An attorney to the extent of providing escrow services to a person; e. A title insurance company to the extent of providing escrow services to a person; f. A securities intermediary, as defined in chapter 41-08, or a commodity intermediary, as defined in chapter 41-09, that:
(1) Does not engage in the ordinary course of business in virtual-currency business activity with or on behalf of a person in addition to maintaining securities accounts or commodities accounts and is regulated as a securities intermediary or commodity intermediary under federal law, law of this state other than this chapter, or law of another state; and
(2) Affords a person protections comparable to those set forth in section 13-09.1-10; g. A secured creditor under chapter 41-09 or creditor with a judicial lien or lien arising by operation of law on collateral that is virtual currency, if the virtual- currency business activity of the creditor is limited to enforcement of the security interest in compliance with chapter 41-09 or lien in compliance with the law applicable to the lien; h. A virtual-currency control-services vendor; or i. A person that:
(1) Does not receive compensation from a person for:
(a) Providing virtual-currency products or services; or
(b) Conducting virtual-currency business activity; or
(2) Is engaged in testing products or services with the person’s own funds.
3. The commissioner may determine that a person or class of persons, given facts particular to the person or class, should be exempt from this chapter, whether the person or class is covered by requirements imposed under federal law on a money service business.