In today’s world, cryptocurrencies are playing a much larger role in people’s lives than they did in the past. A few years ago, many viewed crypto solely as a way to invest. However, this has rapidly begun to change. 

As a result, many states have implemented legislation and regulatory frameworks that foster a friendly crypto environment. Among them is North Carolina (NC), a state many crypto companies have embraced as a result. Here’s a look at some of the key drivers that contribute to making NC so crypto-friendly.  

North Carolina’s Regulatory Framework and Legislation

 

Crypto holders are quickly realizing the many uses on offer for digital currencies. For example, individuals can now use cryptocurrencies for things like online shopping, online gambling, and even purchasing real estate.

 

Online attractions like crypto casinos are becoming more popular than ever since they can be accessed via offshore platforms even in states that don’t specifically regulate online gambling. For example, the best Litecoin gambling sites offer great bonuses and incentives. However, blockchain expert, Kane Pepi, cautions players to ensure they select sites that are vetted for robust security measures. 

 

An added allure stems from the fact that many of these platforms are also so-called anonymous casinos, meaning they can offer enhanced privacy compared to regular gambling platforms. Unfortunately, the fact that even states as crypto-friendly as North Carolina don’t offer legalized online casino gambling (online sports betting is allowed there), means much of the potential tax revenue from such sites flows offshore.

 

However, as of 2024, North Carolina does have regulatory frameworks in place for cryptocurrencies, such as the Money Transmitters Act. This law allows NC to view cryptocurrency as property instead of a digital currency. This means that businesses need to pay capital gains tax on crypto the same way they would with real estate. Most people have a favorable view of The Money Transmitters Act, as it ensures clarity and integrity in digital currency transactions while protecting consumers. 

 

The act states that cryptocurrency exchanges that operate within the North Carolina borders will require a license. This ensures that these organizations are held to the same standards as financial institutions. Essentially, this means they need to adhere to know-your-customer (KYC) procedures and Anti Money Laundering (AML) regulations.

 

People and businesses view these measures as a way to enhance and protect consumers. In addition, they also appreciate the clarity that all of this provides especially in terms of taxation. Businesses can clearly understand their compliance obligations as the law defines the regulatory framework. 

 

Thus, reducing the uncertainty they have and making it easier for them to plan and get everything in order. Furthermore, North Carolina has also taken other legislative actions that help curate a crypto-friendly environment within the state.

 

In 2023, North Carolina passed a bill that commissions the study of what advantages it would bring if they were to hold Bitcoins as part of the state’s funds. The study will examine the state holding, insuring, and liquidating both cryptocurrencies — such as Bitcoin and gold bullion. 

 

This is to identify what impact it will have if North Carolina decides to hold both crypto and gold bullion as part of the state’s funds. One of the main objectives of the study is to identify whether this helps against inflation and reduces volatility while increasing returns for the state. In the long-term, this shows North Carolina’s willingness to accept the benefits that digital currencies bring and make the state a suitable location for crypto businesses and startups.

North Carolina Embracing Blockchain Technology Within Its Sectors

Recently, North Carolina has expressed interest in utilizing blockchain technology throughout the state’s sectors. For example, they looked at advantages it could offer in terms of enhancing security while also boosting efficiency through systems designed for better government record keeping.

 

Additionally, blockchain technology’s potential applications are being examined for use by the state’s banking sector and for various other initiatives.

Supportive Business Environment

Due to North Carolina’s view of cryptocurrency as property and its legislation, the state has positioned itself as a favorable and supportive environment for crypto-related businesses. This is especially true when considering the strict regulations other states have towards digital currencies. As a result, several businesses have noticed this and decided to use North Carolina as their home. 

 

Another essential factor that is fostering a crypto-friendly domain, is the amount of digital currency ATMs in the state. Cryptocurrency withdrawal machines have been popping up all over the state. They are placed in easy and convenient locations such as gas stations and shopping centers. 

 

Coinme, a cryptocurrency exchange company that specializes in technology for Bitcoin ATMs and Kiosks, currently powers 652 digital currency withdrawal machines in NC. This rise in Bitcoin ATMs fosters a positive crypto environment within the state and also makes these digital currencies more accessible to the public.

Conclusion

While there are certainly still some factors that North Carolina can improve upon, the state has made significant progress in establishing themselves as a crypto-friendly state. This is due to several reasons such as their supportive legislation, balanced regulations, and the favorable crypto business environment they have so far fostered. As North Carolina implements new regulations, the state has firmly positioned itself to become a leader in embracing cryptocurrencies and their underlying blockchain technology.