North Carolina has established regulatory exemptions for Bitcoin and Blockchain services. As other U.S. states have shown to be more reticent in regulating such technology, either by imposing numerous restrictions to operate or just remaining silent, North Carolina presents itself as an attractive opening. As an unprecedented shift, many businesses could be able to operate under a safer regulatory base, which would increase the development of the technology as well as advantages for users, such as security as consumers of those services.
It is because earlier this year, the North Carolina House of Representatives drafted a bill that intended to favour Bitcoin and blockchain technologies, aiming to provide much more clear and definite regulation. The bill was filed on behalf of the North Carolina Office of the Commissioner of Banks, which enhanced the necessity of defining virtual currency transmission under the scope of a new Money Transmitters Act (MTA). Although the MTA already regulates non bank companies that develop business activities relating to the transmission of funds between parties, their request is based upon the demand of legal precision in defining the new scope that Bitcoin and Blockchain present.
By this month, The North Carolina Officer of the Commissioner of Banks has indicated on its FAQ page that there are select Bitcoin and Blockchain services that are to be exempted from this bill. Those exempted are digital currency miners, non financial blockchain services and multisignature and non custodial wallets. It is clear that the exemption may be based on the fact that those who are exempted operate differently than Bitcoin businesses that have been established to focus on the transmission of value and/or money. However, it is important to highlight that the regulatory efforts are quite unmatched compared to other states and it is surely interesting to follow the outcome and it would even include some tax deduction for the new industry.
North Carolina has made an important move to avoid restrictions and obstacles to the wide array of bitcoin and blockchain business developers. It is good news, as the debate is beginning to shift away from blockchain as money transmitter into new opportunities that will help enhance and increase its applicability. In addition, as North Carolina seems to be more open to examining and regulating cryptocurrencies, many are eager to see the consequences of such attitude, and it could provoke that many will establish their business in the state and be able to operate under more freedom.