According to Bitcoin news, companies operating in virtual currency will now be required to apply for a money transmitter license following the passing of an amendment to the Money Transmitter’s Act by the North Carolina Senate.
Last month, the State’s General Assembly voted overwhelmingly to pass the Act, with 43 members voting in favor and 3 members against.
This approval comes after the mid-May vote to amend the Money Transmitter’s Act to include the term “virtual currency” to the existing law by members of the North Carolina Senate.
Previous Bitcoin news states that Members of the North Carolina House of Representatives voted 117 to 1 in favor of the amendment in mid-May, paving the way for the General Assembly to deliberate and make a final decision which was given on June.
Under the new amendment, Bitcoin exchanges and other dealers in cryptocurrency will have to pay a $1,500 licence application fee and at least $5,000 annually for a yearly assessment.
Bitcoin, the digital currency used for transfer of value across the world without the involvement of a centralized banking system, has been the source of controversy for several reasons, including instability as a currency, storage insecurity, legitimacy problems and anonymity which sometimes means that Bitcoins are used to pay for illegal activities such as drug trafficking, weapons sale, and other online black market transactions.
However, in spite of these disadvantages, Bitcoin use continues to grow in popularity thanks to the currency’s ease of use across the globe, quick transaction time and greater acceptability as a means of exchange by greater numbers of people.
The volume of Bitcoins traded continues to grow and according to previous Bitcoin news, data from March 2016 showed that an average of 28,000 Bitcoins valued at $420 were being traded daily during that month.
The risks associated with Bitcoins have led to many countries setting up laws to regulate the use of Bitcoins in their economies in order to protect consumers against fraud. In the USA, New York was the first state to proposed regulations for cryptocurrency companies such as Bitcoin.
According to a Bitcoin news report in July 2014, Benjamin Lawsky, Superintendant of Financial Services at New York State’s top financial regulatory body announced that the proposed regulations aimed at reigning in virtual currency companies, protecting consumers, preventing money laundering, and improving cybersecurity.
Under the BitLicense plan, cryptocurrency companies are required to apply for a business license for virtual activities such as transmitting currency for business purposes, storing virtual currency on behalf of others, trading in virtual currency and many others.
Following New York’s examples, other financial regulatory bodies are lending their voice to the cause and seeking to see laws put in place to control this volatile but extremely useful currency.
Other Bitcoin news shows that California is the only other state, apart from New York and North Carolina to seek to have Bitcoin use regulated although other states are fast catching up.
North Carolina’s decision to pass the virtual currency bill is a piece of good Bitcoin news for businesses and other individuals who transact online using this digital currency.
Time will reveal whether Bitcoins will become the currency of choice for people around the globe, easing up transfers of money and facilitating the performance of business activities worldwide.