Maine Implements New Regulations for Unclaimed Virtual Currency
Maine is set to overhaul its handling of abandoned digital assets as new virtual-currency rules under Public Law Chapter 675 take effect on July 29. The legislation introduces a five-year dormancy period before crypto is considered abandoned, creating a significant regulatory shift for businesses holding customer assets.
Regulatory Discrepancies and the Dormancy Clock
The primary challenge for businesses currently lies in a notable mismatch between the new statute and the State Treasurer’s existing guidelines. While the new law establishes a five-year clock for inactivity, the 2026 Holder Reporting Manual still lists liquidated virtual currency under a three-year dormancy period. This discrepancy has left holders without clear transition instructions or a defined reporting cycle, raising questions about how to reconcile the conflicting timelines before the November reporting deadline.
Compliance Obligations for Crypto Holders
Under the new rules, the duty to report and remit assets applies to any business that maintains the private keys or credentials necessary to transfer customer cryptocurrency. Holders are required to deliver the assets in their native form within 30 days of filing, rather than automatically liquidating them. Additionally, for any account valued at $1,000 or more, businesses must send notice via certified mail at least 60 days before filing to ensure the owner has a final opportunity to claim their property.
Liquidation Protocols and Owner Protections
The state administrator maintains the authority to direct the liquidation of assets if native transfer is not feasible, though native assets are generally held by the state for at least one year. If the state elects to sell the cryptocurrency within that first year and the owner later surfaces to file a claim, the statute protects the owner by allowing them to receive the greater of the sale proceeds or the market value at the time of the claim. However, once a holder liquidates assets under the direction of the administrator prior to filing, owners are barred from recovering any market gains that occur after that liquidation.
