While an announcement regarding a strategic Bitcoin (BTC) reserve is expected in the US, a new development concerning Bitcoin and cryptocurrencies has occurred.
At this point, South Carolina has approved a new law that creates a comprehensive regulatory framework for issues related to cryptocurrencies.
According to The Block, South Carolina Governor Henry McMaster signed S.163, a law concerning cryptocurrencies, into law the previous day. With this signature, the South Carolina governor enacted a law protecting the rights of those who own Bitcoin and other cryptocurrencies.
The new law stipulates that individuals and businesses cannot be prohibited from accepting digital assets such as Bitcoin as payment for goods and services. It also stipulates that individuals and businesses cannot be prohibited from storing their digital assets on their own servers or hardware wallets.
The law also prohibits discriminatory taxation applied to Bitcoin. Specifically, the new law includes a provision prohibiting state or local governments from applying separate taxes, withholdings, surcharges, or fees when digital assets are used as a payment method.
The law also legally protects Proof-of-Work (PoW) mining activities. According to the law, local governments cannot restrict the cryptocurrency mining sector in industrial zones.
Conversely, the new law prohibits government agencies from accepting or requesting payments in CBDC. Specifically, agencies, commissions, and subordinate bodies affiliated with the South Carolina state government are prohibited from accepting CBDC payments.
It also includes anti-CBDC provisions prohibiting participation in tests of similar currencies issued by the Federal Reserve.
*This is not investment advice.
