Virginia Updates Crypto Custody Law, Mandates In-Kind Holding

Virginia has updated its unclaimed property laws to include digital assets, requiring custodians to transfer unclaimed cryptocurrency in its original form (in-kind) rather than liquidating it into cash. The new law, signed by Governor Abigail Spanberger, also mandates a minimum one-year holding period before the state can sell these assets. This approach aims to protect owners from potential losses due to forced sales at unfavorable prices or during market downturns. Virginia joins other states like Arizona and California in incorporating digital assets into their unclaimed property frameworks. The law also establishes a five-year inactivity period for deeming crypto accounts abandoned. This development has been welcomed by cryptocurrency stakeholders, including Coinbase's chief legal officer and the Virginia Blockchain Council, as a modernization of financial laws and a positive step for emerging technologies.

(Source：Cointelegraph)