Bitcoin Bill in North Carolina becomes law

Regulation | July 7, 2016 By:

North Carolina Governor Pat McCrory has signed House Bill 289 into law, thereby expanding the state’s Money Transmitters Act to cover activities related to bitcoin and other blockchain-based digital currencies.

Introduced in 2015, the passage of the law represents the fruition of more than a year of engagement between members of the US blockchain and digital currency industry and local regulators.

The Act updates the state’s existing laws to include a defined “virtual currency” term, and clarification as to which activity using virtual currency triggers licensure under the Act. This will ensure that virtual currency miners and blockchain software providers including smart contracts platforms, colored coins, smart property, multi-signature software, and non-hosted, non-custodial wallets will not require a license.

“It’s been a long journey, however the benefits for both business and consumers in North Carolina won’t take nearly as long to surface. North Carolina anticipated key issues, and developed a reasonable solution to address each concern. This has paved the way for other states to realize and embrace the incredible potential of these technologies,” said Perianne Boring, founder and president of the Chamber of Digital Commerce.