Bitcoin Regulations May Become Law

Bitcoin Regulations May Become Law

5:33am May 26, 2015
BTC Keychain via Flickr

North Carolina is considering laws regulating virtual currencies. With Charlotte as America's second-largest banking center, the state's legislators are considering regulations for Bitcoin and other virtual currencies.

North Carolina's banking commissioner wants legislative authority to require that companies circulating digital IOUs meet consumer protection and anti-money laundering standards. This legislation passed the House this month and is pending in the Senate.

The online-only money allows users to swap cash for online funds using Internet exchanges, then store it in a wallet program on their computer. The program can transfer payments to a merchant or individual anywhere in the world without transaction fees or the need to provide bank or credit card information.

The Consumer Financial Protection Bureau warns that the currencies are not backed by the government and are targeted by hackers and scammers, and that deposits are not federally insured like bank accounts.  

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