03 Aug North Carolina: Onerous pending regulation
North Carolina may become the latest state to take an affirmative legislative stance on bitcoin regulation. The proposed bill advancing through the state senate would amend existing (and antiquated) money transmission law, imposing regulations which would disproportionately impact bitcoin startups. This includes a $250,000 minimum net worth requirement for all applicants, as well as a mandatory $150,000 surety bond. The proposed legislation does not offer any provisional licensing or other favorable concessions for startups. Interestingly enough, the bill was sponsored by Representative Stephen M. Ross, a VP and investment officer at Wells Fargo. North Carolina is home to several national and large regional legacy banks. It will be interesting to see how this all plays out. Xapo, however, wasted no time in making a high-profile exit from North Carolina, as it did in New York following implementation of the “BitLicense”.