Todd Bryant is the president and founder of Bryant Surety Bonds. He is a surety bonds expert with years of experience in helping business owners get bonded and start their business. Here, Bryant provides an overview of new cryptocurrency provisions recently added to the Money Transmitter Act in North Carolina, and spells out what they will mean for bitcoin businesses operating in the state. The North Carolina Money Transmitter Act was recently extended to cover bitcoin traders with House Bill 289, signed in July 2016 by State Governor Pat McCrory. Deemed as the ‘virtual currency law’ in the state, the bill introduces a legal framework for regulating bitcoin and blockchain technology. While the legislation had to go through an elaborate and long discussion period, including the feedback of various stakeholders, the bill is seen today as business-friendly by many. It brings legal clarity in the field of virtual currencies in North Carolina, but does not open venues for over-regulation. The Chamber of Digital Commerce and other involved parties contributed to the formulation of this addition to the act. They have also expressed satisfaction with the outcome. Bitcoin regulations The now extended Money Transmitter Act includes a definition of virtual currency, which reads: “A digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value but only to the extent defined as stored value under G.S. 53-208.42(19), but does not have legal tender status as recognized by the United States Government.” Naturally, this definition has been the first step towards regulating the virtual currency field in North Carolina. According to the act, bitcoin traders will fall in the category of money transmitters and as such, they will have to obtain a license. There are a number […]
