South Carolina Cryptocurrency Updated Laws
Regulation of South Carolina 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 of South Carolina has not provided any guidance on 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);
S.B. 738, 123rd Gen. Assemb, Leg,. 2nd Reg. Sess. (S.C. 2020).
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).
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.
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).
Blockchain Information & Resources:
- Anti-Collusion | What Is Obfuscation?
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Blockchain Technology Explained: What is Blockchain and How Does It Work?
- Digital Currency Transmission Laws and Regulations by State
- Hard and Soft Forks: A Detailed and Simplified Explanation of How Blockchains Evolved
- Legal Issues around Cryptocurrency
- Merkle Trees
- Permissioned and Permissionless Blockchains
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 us to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.