North Carolina Adopts Business-Friendly Regulation on Blockchain

North Carolina Governor Pat McCrory has ratified a new Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-friendly law, marking a significant step forward for the regulation of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in the U.S. Known as the North Carolina Money Transmitter Act, it follows work on previous state bills and about sixteen months of deliberations between the North Carolina Commissioner of Banks, the General Assembly and the Chamber of Digital Commerce.

The Act updates the American state’s existing laws to include a defined “virtual currency” term, and includes clarification as to which activity using virtual currency triggers the Act. This is said to ensure that 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.

This approach starkly contrasts with New York’s separate licensing regime, and supporters say it will hopefully provide a precedent for other jurisdictions in the U.S that wish to attract blockchain related startups and businesses.

“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,” said Perianne Boring, founder and President of the Chamber of Digital Commerce. “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.”

“We applaud the North Carolina Commissioner of Banks for its thoughtful engagement and approach towards making this bill a reality,” added Boring.