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Bill

HB 1196

update Uniform Unclaimed Property Act to include provisions related to virtual currency and notice requirements.

2025 Regular Session Introduced by Eric Emery and 4 co-sponsors

South Dakota law now includes cryptocurrency in unclaimed property protections, requiring digital asset holders to follow state custody and notice rules for dormant virtual currency accounts.

Signed by the Governor on 2025-03-13 H.J. 543
#property #unclaimedproperty #virtualcurrency
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Bill Summary · HB 1196

Legislative bill overview

HB 1196 updates South Dakota's unclaimed property law to include virtual currency (like cryptocurrency) and modernizes notice requirements for unclaimed assets. The bill clarifies how dormant digital assets are handled and reported to the state, bringing the Uniform Unclaimed Property Act into the digital age.

Why is this important

As cryptocurrency and digital assets become more common, state unclaimed property laws hadn't addressed what happens when virtual currency sits in accounts with no activity. This update ensures digital assets follow the same custody and notification rules as traditional property, protecting consumers while clarifying obligations for financial institutions and crypto platforms holding these assets.

Potential points of contention

  • Definition and valuation challenges: Determining what constitutes unclaimed virtual currency and how to value volatile digital assets for reporting purposes could create compliance complexity and disputes
  • Custody and technical barriers: Unlike traditional bank accounts, holding cryptocurrency in state custody involves technical security challenges and custody infrastructure that may be costly or unclear
  • Notice method ambiguity: Modernized notice requirements for digital asset owners may lack specificity about how platforms contact users, potentially creating compliance uncertainty

Compiled from official sources — confirm details with the bill’s official record.

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