Florida is set to have its own cryptocurrency czar.

The Sunshine State's chief financial officer, Jimmy Patronis, said in a statement Tuesday that he has created a new position to supervise the state's cryptocurrency industry. He explained that the new overseer will be tasked with enforcing applicable regulations to protect investors from potentially malicious actors.

"Florida can no longer remain on the sidelines when it comes to cryptocurrency. I have directed my office to create a position that will oversee how current securities and insurance laws apply to Initial Coin Offerings (ICOs) and cryptocurrencies as well as shape the future of these regulations in our state," Patronis remarked.

Similarly, Patronis said that the position was needed in order to prevent any form of exploitative investment pitches. And while it's not clear when the position will be filled – or by whom – Patronis said that the steps to be taken are necessary ones.

Indeed, Florida has seen several lawsuits filed in connection with the BitConnect cryptocurrency scam, and the U.S. state was once the home of Cryptsy, the now-defunct exchange service that collapsed in early 2016 and resulted in allegations of fraud, a class-action lawsuit, and a multimillion-dollar judgment.

While he wants to "keep pace with demand and not deter innovation," Patronis added that "it is absolutely essential that Florida create safeguards to protect our consumers from fraud."

Cryptocurrencies image via Shutterstock