Wyoming’s New Law Protects Digital Asset Owners’ Privacy
Mar. 15, 2023.
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Wyoming protects digital asset owners' privacy with new law preventing forced disclosure of private keys.
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Wyoming Governor Mark Gordon has signed legislation to protect digital asset owners’ privacy. Except in cases where individuals are required to disclose the ownership or transfer of crypto during a lawful proceeding, the law prohibits courts from requiring individuals to disclose their private keys. According to the new law, Wyoming courts will no longer compel individuals to provide access to any private keys that grant access to their digital assets, digital identity, or any other interests or rights that the private key provides. The only exception to this rule is when individuals are required to disclose cryptocurrency ownership or transfer during any legal proceeding.
Court-ordered disclosure of private keys contradicts how private keys are intended to work, and the courts lack the experience to protect private keys. Wyoming, as a state, has taken a crypto-friendly approach to regulating cryptocurrency in the US, becoming the first jurisdiction to recognize decentralized autonomous organizations as limited liability business entities. The new law aims to clarify the legal status of a private key and how courts should treat it, while also protecting digital asset holders’ privacy and property rights.
Source: CoinTelegraph (link)
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