What are the laws governing the trading of crypto-currencies?

Crypto-currencies, such as Bitcoin, are digital assets that can be used as a medium of exchange. As with other investments, the trading of crypto-currencies is subject to various laws in different jurisdictions. In Washington, the laws that govern the trading of crypto-currencies are found in the Alternative Investment Law, which contains a chapter dedicated to digital assets. Under Alternative Investment Law, it is illegal to offer or sell crypto-currencies without first registering with the Washington State Department of Financial Institutions. Crypto-currency trading must also comply with financial record-keeping regulations. Investors must be provided with a full disclosure of the risk associated with crypto-currency investments, such as the potential for fraud or hacking. Crypto-asset trading firms must also obtain a Washington Money Services Business license and comply with anti-money laundering laws. Furthermore, crypto-currency investors must be aware that their trading activities may be subject to capital gains taxes. They should also understand that crypto-currency values are highly volatile, and can rise or fall quickly in short periods of time. It is important for crypto-currency investors to understand the laws governing the trading of crypto-currencies in Washington. Doing so will help protect them from potential risks associated with this investment type, and ensure that they are trading in a compliant and responsible manner.

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What are the laws governing the trading of crypto-currencies?

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