State of Delaware Governor Signs Blockchain Legislation

A portion of the law explains:
“Any records administered by or on behalf of the corporation in the regular course of its business, including its stock ledger, books of account and minute books, may be kept on, or by means of, or be in the form of, any information storage device, method, or one or more electronic networks or databases (including one or more distributed electronic networks or databases), provided that the records so kept can be converted into clearly legible paper form within a reasonable time.”
In spite of the vague wording in the bill, this fairly means that corporate entities, many of which are registered in Delaware, can store financial records in any electronic means regardless of the traditional technical requirements on how it’s done, which includes Blockchain records.
As long as these records can be printed on paper “within a reasonable time” the State of Delaware would accept these records as authentic and verifiable.
After a swift passage this effectively amends Delaware’s General Corporation Law, Blockchain advocates sought to label the passage as a”historic” milestone, given the State of Delaware now recognizes electronic transactions recorded in Blockchains as verifiable data.
Therefore, it defines with certainty that all transactions are done using cryptocurrencies and can now be recorded in accounting ledgers without question of its validity. This could potentially help prevent future taxation-related problems and more centralized records of the corporations.
Jack Markell, former Delaware governor, has also launched an initiative to promote Blockchain efficiencies in government with this law being one of the baby steps.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s