North Carolina House Bill 86

So this is what it looks like when you start to implement Cryptocurrencies.

If the licensee possesses virtual currency as permissible investments under this Article, the Commissioner may at any time request that the licensee verify, in a manner acceptable to the Commissioner, aggregate virtual currency transmission obligations outstanding and virtual currency held as permissible investments, including virtual currency stored offline.

Coinbase: Mike Lempres comments on the latest news.

And the bill looks like this:

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

HOUSE BILL 86

RATIFIED BILL

*H86-v-3*

AN ACT TO MAKE CLARIFYING CHANGES TO PERMISSIBLE INVESTMENTS AND

STATUTORY TRUST UNDER THE MONEY TRANSMITTERS ACT.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 53-208.42 reads as rewritten:

Ҥ 53-208.42. Definitions.

For purposes of this Article, the following definitions apply:

(2) Authorized delegate. – An entity designated by the licensee under the

provisions of this Article to engage in the business of money transmission on

behalf of a licensee from a branch office in this State.

(17) Permissible investments. – One or more of the following, but only to the extent

that they are maintained in an account located in the United States:

  1. Cash.
  2. Certificates of deposit or other debt obligations of a depository

institution, either domestic or foreign.

  1. Bills of exchange or time drafts drawn on and accepted by a

commercial bank, otherwise known as bankers’ acceptances, which are

eligible for purchase by member banks of the Federal Reserve System.

  1. Any investment bearing a rating of one of the three highest grades as

defined by a nationally recognized organization that rates securities.

  1. Investment securities that are obligations of the United States, its

agencies, or instrumentalities or obligations that are guaranteed fully

as to principal and interest of the United States or any obligations of

any state, municipality, or any political subdivision thereof.

  1. Shares in a money market mutual fund, interest bearing bills or notes

or bonds, debentures, or preferred stock traded on any national

securities exchange or on a national over the counter market, or mutual

funds primarily composed of such securities or a fund composed of

one or more permissible investments as set forth herein.

  1. Any demand borrowing agreement or agreements made to a

corporation or a subsidiary of a corporation whose capital stock is

listed on a national exchange.

  1. Value of receivables due to the licensee that are no more than 90 30

days past due or otherwise doubtful of collection.

  1. Virtual currency owned by the licensee, but only to the extent of

outstanding transmission obligations received by the licensee in like

kind virtual currency.

  1. Any other investments or security device approved by the

Commissioner.

Page 2 House Bill 86-Ratified

….”

SECTION 2. G.S. 53-208.48 reads as rewritten:

Ҥ 53-208.48. Permissible investments and statutory trust.

(a) Each Except as otherwise provided in this section, each licensee under this Article

shall possess at all times unencumbered permissible investments having an aggregate market

value, calculated in accordance with generally accepted accounting principles, of not less than

the aggregate face amount of all outstanding transmission obligations. This requirement may be

waived by the Commissioner if the dollar volume of a licensee’s outstanding transmission

obligations does not exceed the bond or other security devices posted by the licensee pursuant to

G.S. 53 208.47.

(b) Permissible investments, even if commingled with other assets of the licensee, shall

be deemed by operation of law to be held in trust for the benefit of the purchasers and holders of

the licensee’s outstanding payment instruments and stored value obligations in the event of the

bankruptcy of the licensee.

(c) If the licensee possesses virtual currency as permissible investments under this

Article, the Commissioner may at any time request that the licensee verify, in a manner

acceptable to the Commissioner, aggregate virtual currency transmission obligations outstanding

and virtual currency held as permissible investments, including virtual currency stored offline.”

SECTION 3. Except as otherwise provided, this act is effective when it becomes

law.

In the General Assembly read three times and ratified this the 14th day of June, 2018.

s/ Philip E. Berger

President Pro Tempore of the Senate

s/ Tim Moore

Speaker of the House of Representatives

_____________________________________

Roy Cooper

Governor

Approved __________.m. this ______________ day of ___________________, 2018

 

 

 

It’s that simple!

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