North Carolina’s banking commissioner is seeking legislative authority to require that companies circulating digital IOUs meet consumer protection, anti-money laundering and other standards. Legislation passed the state House earlier this month and is pending in the Senate.
State bank regulators in Texas, Washington and Kansas issued guidelines in 2014 outlining their regulation over virtual currency traders.
The North Carolina legislation would revise regulation of non-bank companies that make a business out of transmitting funds for others. The business is regulated to prevent money laundering, cut off terrorism financing, and to protect consumers from the risk that money-transfer businesses fail to deliver the funds as agreed.
According to the legislation, to be licensed in North Carolina, companies must: post a surety bond intended to protect customers of at least USD 150,000 growing to a maximum of USD 250,000 based on trading volume, have a net worth of at least USD 250,000, which the banking commissioner could increase if deemed necessary and conform to a clear set of prohibited practices such as never failing to send money as directed.
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