North Carolina takes first steps to regulate Bitcoin
The Bitcoin and cryptocurrency - in general - are creating a whole set of new issues for financial regulators. Any company that works with Bitcoin can be labeled as a money transmitter, although there are exceptions. Pools mining, for example, are not necessarily the transfer of money in the traditional sense. The new law regulates the transfer of money in North Carolina - USA - now includes a reference Bitcoin, which sets a precedent for other states intriguing.
When thinking of money transmission services, there are some companies that come to mind: banks, remittance companies and digital wallet providers are all transmitters. These companies control the user funds and are responsible for keeping the money safe. In addition, they must adhere to state or national law and maintain accurate records of all customers.
Bitcoin in space, things are a little less obvious. Like most US states do not consider Bitcoin as money in the traditional sense, it is difficult to determine which companies can be labeled as money transmitters. Exchanges and wallet providers (wallets) are two examples of potential candidates to be placed in the category of "money transmitters".
The new law regulates the transfer of money in North Carolina may be the North to resolve this strange situation. To be more precise, state authorities recently updated the act that now includes a reference to the cryptocurrency. While this is not unusual, this new law established a precedent for other US states as well as countries around the world, can advance in the regulations.
The new regulations of the North Carolina State says:
"The digital representation of value that can be digitally traded and acts as a medium of exchange, an account unit, or a store of value, but only to the extent set to value stored in GS 53 to 208.42 (19), but not legal tender as recognized by the US Government "
While this may not seem out of the ordinary, it is the first step towards the regulation of Bitcoin. Unfortunately, this statement also means any Bitcoin trader - rather than exchange or operators wallet service - are money transmitters as well. Bitcoin Trading in the state will require a specific license.
While this may increase the interest of the population by cryptocurrency because they will feel safer when negotiating, it will certainly decrease the interest of people and companies to sell Bitcoin in the state of North Carolina. Any State interference in this market should be viewed with extreme caution and prudence.
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