South Carolina Blockchain Legislation Status

South Carolina Cryptocurrency Updated Laws

Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

PROPOSED LAWS & REGULATIONS

The State’s money transmitter laws do not explicitly include “virtual currencies,” but does include the concept of “monetary value” as a medium of exchange.

The State has not provided any guidance as to the applicability of its regulations on virtual currencies.

H.B. 4200/S.B. 524

In 2019/2020, South Carolina proposed to include “virtual currency” in the unclaimed property act.

Status: Referred to Judiciary Committee

 H.B. 4200, H.B. 4200, 123rd Gen. Assemb., 1st Reg. Sess. (S.C. 2019);

S.B. 524, 123rd Gen. Assemb., 1st Reg. Sess. (S.C. 2020).

H.B. 4351/ S.B. 738

In 2019/2020, South Carolina introduced legislation which would: (i) establish the “South Carolina Blockchain Industry Empowerment Act” – allow a corporation to specify in its articles that shares of the corporation be represented by share certificates in the form of certificate tokens; (ii) exempt “Open Blockchain Tokens” from security and money transmission laws; (iii) adopt a Financial Technology Sandbox Act; (iv) provide for definitions and regulation of digital assets.

Status: Referred to Banking and Insurance Committee. 

H.B. 4351, 123rd Gen. Assemb., Leg. 1st Reg. Sess. (S.C. 2019);

https://legiscan.com/SC/bill/H4351/2019

S.B. 738, 123rd Gen. Assemb, Leg,. 2nd Reg. Sess. (S.C. 2020).

https://legiscan.com/SC/bill/S0738/2019

H.B. 3849

In 2021, South Carolina House introduced bill 3849. If approved, it would: (i) enacts the Revised Uniform Unclaimed Property Act of 2021; (ii) provide for the manner in which and procedures and requirements under which abandoned and unclaimed property, as defined in the act, may be escheated by the state for sale or other disposition; and (iii) provide criminal penalties for certain violations.

Status: Referred to Judiciary Committee. H.B. 3849, 124rd Gen. Assemb, Leg,. Reg. Sess. (S.C. 2021).

https://legiscan.com/SC/bill/H3849/2021

ENACTED LAWS & REGULATIONS

In 2014, the South Carolina Attorney General issued the advisory on virtual currency – investor alert cautioning the investors to consider the risks associated with virtual currencies.

http://www.scag.gov/wp-content/uploads/2013/08/Virtual-Currency-Securtities-Alert-4-29-14-Copy-docx-00319304xD2C78.pdf

S R. 1158

In 2020, Senate Resolution 1158 was adopted acknowledging the importance of blockchain technology and encouraging South Carolinians to join the Senate in encouraging the promotion of blockchain technology in the state.

S R. 1158, 123rd Gen. Assemb. Leg. 2nd Reg. Sess. (S.C. 2019).

https://legiscan.com/SC/text/S1158/2019

South Carolina Cryptocurrency and Blockchain Attorneys

Is cryptocurrency legal in South 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.