North Carolina Passes House Bill 86: New Cryptocurrency Legal Regulations
It has been recently announced that many are pushing for Bill 86, which is awaiting Governor Roy Cooper’s acknowledgement and signature to confirm its implementation. Many crypto investors and crypto-based firms seem to be happy with what’s being proposed on the table, as the bill takes a reasonable approach towards cryptocurrencies and related ventures.
Bill 86 was accepted on June 14, 2018 by North Carolina’s general assembly. Some additions have also been made, and for the time being, it is clear that more emphasis will be placed on permissible investments and statutory trusts, both found under the Money Transmitters Act.
As for “complying by the bill”, firms must be certified and should report any crypto related activities that they are a part of. In addition, Commissioner Ray Grace, will be given the authority to verify any licenses as he wishes.
Here is an extract quoted from Bill 86:
“If the license possesses virtual currency as permissible investments under this Article, the Commissioner may at any time request that the licensee verify, in a manner acceptable to the Commissioner, aggregate virtual currency transmission obligations outstanding and virtual currency held as permissible investments, including virtual currency stored offline.”
It is believed that Commissioner Grace contributed to the bill, with in depth breakdowns as to what virtual currencies mean along with the essentials. Of the many crypto-backed firms, Coinbase was first to express its enthusiasm, admiring the move made by the representatives involved.
In particular, Coinbase described Bill 86 as an example that proves that regulators and legislators can successfully make cryptos exist, which is something that investors were not always so supportive of. Chief Legal and Compliance Officer of Coinbase, Mike Lempres added that they can help to “foster innovation by either licensing cryptocurrency money transmissions or exempting cryptocurrency from money transmission laws.”
North Carolina was not the only one to pass such a law, as Coinbase noted a similar move made by Wyoming, a state that was previously troublesome in terms of its crypto guidelines.
The company further praised their legal efforts, as they believe:
“By helping cryptocurrency companies comply with the letter of the law, leaders in both states are paving the way for the economic and social benefits of this new technology to flourish within their communities.”