PROVIDENCE, RHODE ISLAND — Rhode Island has finalized regulations addressing how virtual currency is handled under the state’s unclaimed property laws. The rules spell out what holders (e.g., exchanges/custodians) must do with dormant crypto and set clear procedures for liquidation and remittance to the state.

Core Requirements in Rhode Island’s Virtual Currency Rules

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Liquidate, then remit (timing requirement)

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When virtual currency becomes dormant/unclaimed, the holder must convert it to U.S. dollars and remit the cash proceeds to the Rhode Island Unclaimed Property Administrator. This conversion and remittance must occur no later than 30 days before the statutory reporting deadline.

Liability shield for holders

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After timely liquidation and delivery of proceeds, holders are expressly protected from liability for any subsequent price movement or value change in the virtual asset.

Legal basis & implementation

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Rhode Island’s Unclaimed Property Administrator is authorized to accept virtual currency within the state’s framework for “other intangible property,” providing the statutory footing to treat digital financial assets as unclaimed property and to require liquidation procedures.

📄 Source: Kelmar Associates, March 2025 Legislative Update

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Why it matters

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For holders

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• Action item: Liquidate qualifying dormant virtual currency and submit proceeds ≥ 30 days before the reporting deadline.
  
  
• Benefit: Clear compliance path plus statutory immunity once funds are remitted.
  
  

For owners

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• Payout format: Claims will be satisfied in cash (liquidated value) rather than in the original digital tokens.
  
  

Wider regulatory landscape

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Rhode Island’s move is part of a broader national trend: states are updating unclaimed property regimes to address crypto, with varying policies on liquidation vs. maintaining assets in native form.

🔗 Source: Kelmar Associates Regulatory & Legislative Resources

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Additional Resources

• 📘 Rhode Island Legislative Update — March 2025 (Kelmar Associates)
  
  
• 📚 General Unclaimed Property Legislation & Alerts (Kelmar Associates)