North Carolina Cryptocurrency Updated Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
PROPOSED LAWS & REGULATIONS
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
ENACTED LAWS & REGULATIONS
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)
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
A bill was introduced and approved in 2017 (H.B 229
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
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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.
We are dedicated to staying at the forefront as these emerging technologies continue to revolutionize social and economic activities. Contact us to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
