North Carolina to tie virtual currencies to "monetary value" under existing laws, rather than create new regulations

In a story published today on CoinFinance, an unnamed North Carolina Commission of Banks (NCCOB) spokesperson said that regulators in the state were opting to handle bitcoin-based investments and businesses under existing rules. The NCCOB will treat bitcoin and other cryptocurrencies as “monetary value,” as defined in the N.C. Money Transmitters Act. Under those rules, a standard money transmitter license and at least $100,000 in assets is all that will be required to operate a bitcoin exchange or ATM in the state. These rules mean that bank-like bitcoin businesses will need to meet the same standards as ATM providers and Western Union desks.

It’s not clear if bitcoin startups, particularly those that develop software rather than process payments, will be subject to the rules. The NCCOB spokesperson suggested that this was unlikely, as such companies wouldn’t fall under the Money Transmitters Act jurisdiction normally, but states that it was impossible to give a “generic opinion on specific companies without reviewing the details of that company’s business.”

Unlike the New York Department of Financial Services’ BitLicense rules, the NCCOB’s rules would not require bitcoin-using companies to convert their profits to dollars, or otherwise direct how such profits were used or invested. It would, however, require that licensed transmitters hold “unencumbered permissible investments” of at least the face value of outstanding funds.

The NCCOB is leaving the door open to revisiting these rules, however, noting that the regulatory agency has “concerns about the ability of existing law to keep pace with changes in cryptocurrencies.” The spokesperson said that should the current ruling prove inadequate, further legislation may be necessary.