Legislation heads to governor’s desk for review

The Michigan Senate unanimously approved a proposal today from state Rep. Ryan Berman updating the Michigan Penal Code to reflect technological advancements.

House Bill 4105, part of a bipartisan package, expands the embezzlement definition within state law to include cryptocurrency to protect Michigan consumers.

“Real crimes can be committed with this form of currency, so our state should be out front and leading in terms of how we protect consumers,” said Berman, of Commerce Township. “This is not a deterrent to use these forms of currency, but acts as a safeguard when bad actors are present.”

Digital currency first started to appear in the United States in the early 1990s, but its popularity has taken off due to a surge in online business and the ease and unregulated nature of online exchange. Several major merchants across the country now accept digital forms of currency.

Cryptocurrency is not officially recognized as a form of money, so loopholes have naturally arisen within the law – which specifically defines a transfer of money in certain crimes.

The plans do not add any additional crimes or penalties. They merely update law to clarify that if a person were to engage in criminal activity with a digital form of currency such as Bitcoin, their actions would be treated as if they were doing it using cash.

HB 4105, which had previously advanced through the House in a 108-1 vote, now advances to the governor for consideration and potential signature.