North Carolina MTA Regulation Exempts Some Bitcoin Businesses

On December 10, the U.S. state of North Carolina has updated the state’s Money Transmitter Act (MTA) regulatory bill to exempt some Bitcoin and blockchain businesses to avoid problems that have occurred in other states in the United States.

The North Carolina Office of the Banking Commissioner (NCCOB) has exempted digital currency miners, non-financial blockchain services, and multi-signature and non-custodial wallet providers from regulation under the state’s money transmitter act (MTA), according to a significantly updated money transmitter FAQ page.

Notably, the exemption is the result of a collaboration between the banking commission and the cryptocurrency industry lobbying group, the Council for Digital Commerce (CDC).

The NCCOB organization has previously expressed support for a bill that would cover business activities related to bitcoin and digital currencies.

According to the Association for Digital Commerce and its partners, North Carolina’s choice to work directly with industry stakeholders stands in stark contrast to New York’s BitLicense, which went into effect earlier this year.

Amy Kim, an attorney at BuckleySandler LLP, said in a statement:

"These FAQs are compelling, they define specific activities to be regulated and could serve as a template for other states to follow."

In addition to the exemptions, the agency also specified that digital currency transmissions are subject to MTA regulation, and virtual currency “transactions and managers” will be subject to regulation depending on their business models.

“A trader who sells his or her own virtual currency would generally not be considered a virtual currency transmitter under North Carolina’s MTA regulations. In contrast, a trader who holds customer funds while arranging third-party purchases and sales and exchanges virtual currency for fiat currency between buyers and sellers would generally be considered a virtual currency transmitter under North Carolina’s MTA regulations,” the FAQ page states.

Additionally, North Carolina further clarified that digital currency businesses in the state do not need to apply for a special license, noting that it “is subject to the same standard” as other entities operating as fiat money transmitters.

Overall, this marks a significant update to the agency’s FAQ page, providing new regulatory clarity for businesses in the digital currency industry.

Previously, North Carolina law exempted only licensed money transmitters, according to bitcoin advocacy group Coin Center.

Original article: http://www.coindesk.com/north-carolina-exempts-bitcoin-regulation/
By Pete Rizzo
Translation: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/north-carolina-bitcoin)