North Carolina Gov. Pat McCrory has signed a law that defines “virtual currency” and clarifies what activity triggers licensure. The Chamber of Digital Commerce views the measure as a historical moment for state regulation of virtual currencies and blockchain technology. Gov. Pat McCrory The ratification of the bill, also known as the North Carolina Money Transmitter Act, follows 16 months of deliberations between the chamber, the state’s General Assembly and the North Carolina Commissioner of Banks.
The General Assembly approved the bill last month, CCN reported. Law Defines ‘Virtual Currency’
The law updates the existing laws to define the term “virtual currency” and the activities that trigger licensure. Virtual currency miners and blockchain software providers will not require a license for multi-signature software, smart contract platforms, smart property, colored coins, and non-hosted, non-custodial wallets.
Dan Hansen, chair of the chamber’s state working group and a partner at Perkins Coie LLP , said centralized cryptocurrencies pose a challenge to regulators and law enforcement officials in determining how to integrate them into the existing legal fabric. “ North Carolina should be commended for investing the requisite time to understand decentralized cryptocurrencies and thoughtfully addressing them in the updated Money Transmission Act,” he said.
The chamber believes North Carolina took a business friendly approach that encourages companies to use blockchain technology and virtual currency, an approach that will bring technology companies back to the state. The North Carolina action contrasts with New York State’s separate licensing regime. As such, it provides a good direction for other states that are considering regulations. Chamber Worked With Stakeholders
Perianne Boring, the chamber’s founder and president, noted it’s been a long process to secure the law, but it benefits both consumers and businesses in the state.
“North Carolina anticipated key issues, and developed a reasonable solution to address each concern,” […]
