Louisiana's New HB1256 Law on Unclaimed Crypto Assets

I was looking for some official info on this new House Bill and found a link to it. So here's what I got: According to their definition, a digital asset includes: - Virtual currency - Cryptocurrency - Natively electronic assets like stablecoins and NFTs - Any digital-only asset that gives economic, proprietary, or access rights What doesn’t count as a digital asset: - Securities - Game-related digital content - Gift cards - Loyalty cards So it turns out crypto is treated as unclaimed property under Louisiana's laws. If you haven't touched your crypto for 3 years, it's considered abandoned. In that case, exchanges, acting as custodians, have to report and hand over those assets to the state as part of the unclaimed property system. This really highlights the need to keep our crypto in wallets we control. If there's no activity on an account, the state could take it. Honestly, I feel like 3 years is a bit too short. What do you all think about this law? Is it about confiscating or recovering assets? What happens if someone forgets about their exchange account with crypto sitting there? Or if the owner passes away and the heirs are unaware of the crypto holdings?

Phew, thank goodness my Genshin Impact waifus, Runescape gold, Maplestory cash shop accessories, and CS:GO2 skins are safe. Can the state have my balls if I haven't used them in 3 years, too? As far as if it's confiscation or recovery, I think it's kinda...both? Obviously having this law is good for the government if they want free coins in exchange for their patience, but I also think this is in place to force people to move large amounts of coins intentionally left dormant on exchanges, as a means to track where they end up. You aren't exactly the brightest person in the world for intentionally having a large amount of dormant coin on an online exchange in the first place, but then again you could also just be forgetful.

It's the custody service's job to send several notifications to the account holder before reporting it to authorities as an abandoned asset. The service could create a new policy that encourages users to list relatives/heirs' contact as whitelisted contacts. So, when the asset is at risk of being liquidated by the state, the service sends a notification to the listed contact, either simultaneously or in multiple waves.

We should understand that in putting our online fortune in online exchanges we are sacrificing real ownership and we are entrusting our money to a middle man. Issue now obviously shows why putting money on an online platform is extremely dangerous in case we want long term. I think this new law definitely represents disguised way of state seizure, not beneficial recovery strategy, since period of three years is nowhere near long-term investor. Mostly, individuals purchase online currencies with intention to keep it securely stored in five to ten years without logging in or conducting transactions. In order to safeguard your wealth against these hostile state regulations, it is crucially important to transfer your funds in personal digital wallet and have exclusive keys to them.

This also happened in California recently where it was portrayed as the government wanting to confiscate people’s property because they are woke communists. Louisiana is very different from California and so are other states with similar laws. These laws typically allow the original owner to reclaim their abandoned property. It’s not as overreaching as some may think, but it’s also not entirely ideal. If I forgot I had some coins that massively increased in value on Coinbase, I would hope it would be as easy as resetting my forgotten password to get my funds back.