2024 Cryptocurrency Legislation in New Mexico

As of 2024, the cryptocurrency legislation landscape in New Mexico is characterized by a cautious and regulated approach, particularly in relation to money transmission and the use of digital currencies.

New Mexico’s financial regulatory framework, specifically the Uniform Money Services Act, does not explicitly include the concept of “virtual currencies.” However, the State’s Regulation and Licensing Department has issued guidance stating that entities engaged in exchanging virtual currency for money, or any other form of monetary value or stored value, must be licensed by the Financial Institutions Division (FID) as money transmitters. This indicates a regulatory stance that aims to encompass virtual currency activities within the scope of traditional financial regulations.

The state has seen legislative proposals regarding virtual currencies and blockchain technology, but as of 2024, there have been no major legislative breakthroughs. For instance, H.B. 649, which was introduced in February 2019, proposed requiring a money transmission license for businesses engaging as a cryptovalue creator or cryptovalue exchange. However, this bill was postponed indefinitely, leaving some ambiguity in the regulatory landscape.

Additionally, S.B. 113, introduced in January 2020, aimed to create a state blockchain technology task force. This bill too was postponed indefinitely, indicating a cautious and measured approach by the state legislature towards integrating blockchain technology into the state’s regulatory framework.

The New Mexico Securities Division and New Mexico Financial Institutions Division have also issued alerts about the risks associated with trading and investing in virtual currencies. These alerts reflect the state’s concern over consumer protection and the potential risks inherent in cryptocurrency investments.

Overall, the cryptocurrency regulatory landscape in New Mexico as of 2024 is marked by an effort to bring digital currency activities under existing financial regulatory structures, coupled with a cautious approach towards enacting new laws specifically tailored to virtual currencies and blockchain technology.

Sources:

Freeman Law: New Mexico Blockchain Legislation Status

New Mexico Legislature: Home – New Mexico Legislature

Money Transmitter Law: New Mexico Virtual Currency License