North Carolina Blockchain Legislation Status

North Carolina Cryptocurrency Updated Laws

Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

PROPOSED LAWS & REGULATIONS ENACTED LAWS & REGULATIONS LAWS & REGULATIONS NOT PASSED
 

In 2014, the North Carolina Register issued the 29 N.C. Reg. 1045 proposed Regulations aiming to clarify the requirements for entities involved in virtual currency under the North Carolina Money Transmitters Act.

 

Therefore, North Carolina has expanded its “Money Transmitters Act” to cover activities related to Bitcoin and other virtual currencies.

N.C. Administrative Code, Title 4, Chapter 3, Subchapter 3F.

http://reports.oah.state.nc.us/ncac/title%2004%20-%20commerce/chapter%2003%20-%20banking%20commission/subchapter%20f/subchapter%20f%20rules.pdf

Also, the North Carolina Office of the Commissioner of Banks issued a consumer alert regarding virtual currencies.

 

http://www.nccob.org/Public/docs/Financial%20Institutions/Money%20Transmitters/OCOB_Virtual_Currency_Alert.pdf

The law defines virtual currency traders as money transmitters and requires they obtain a license.

N.C. Gen. Stat. Ann. § 53-208.42 (West 2019).

https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_53/GS_53-208.42.pdf

 
A bill was introduced and approved in 2017 (H.B. 229) providing several exemptions to the definition of virtual currency, including for virtual currency miners, and software companies implementing blockchain services (example: smart contract platforms, smart property, multi-signature software, and non-custodial and non-hosted wallets).

 

2017 North Carolina Laws S.L. 2017-102 (H.B. 229).

 

https://www.ncleg.gov/EnactedLegislation/SessionLaws/HTML/2017-2018/SL2017-102.html

 

In 2018, the State enacted legislation clarifying that the State’s Money Transmitters Act does not require virtual currency exchanges to maintain a reserve fund equal to their customer’s aggregate investment.

N.C. Gen. Stat. Ann. Article 16B. § 53-208.

https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_53/Article_16B.pdf

  In 2018, North Carolina’s Board of Elections and Ethics Enforcement office issued guidance on using cryptocurrencies for political campaign contributions.

The Board stated that it does not view a contribution of cryptocurrency as an in-kind contribution appropriate under state law.

 

2018 NC REG TEXT 501196 (NS).

 

 
North Carolina law also imposes additional insurance requirements on virtual currency transmitters to address “cybersecurity risks.”

 

N.C. Gen. Stat. Ann. § 53-208.47 (West 2019).

 

https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_53/GS_53-208.47.pdf

North Carolina Cryptocurrency and Blockchain Attorneys

Is cryptocurrency legal in North Carolina? Do you have Cryptocurrency or Blockchain Issues or questions? Freeman Law is an innovative thought leader in the blockchain and cryptocurrency space. Blockchain and virtual currency activities take place in a rapidly evolving regulatory landscape. Freeman Law is dedicated to staying at the forefront as these emerging technologies continue to revolutionize social and economic activities. Contact Freeman Law to Schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.