Legal Crypto In North Carolina

Overview of Cryptocurrency Legality and Regulation in North Carolina

Legality of Cryptocurrency

North Carolina Cryptocurrency: According to state law, the use cryptocurrencies, including digital and virtual currencies, such as Bitcoin, is permissible under certain conditions. Cryptocurrencies are not considered legal tender but can be used as a medium of exchange for goods or services provided that the regulator conditions are met. The NC Digital Asset Freedom Act ( H.B. 920, April 1, 2025) is an unusual law that is specific to North Carolina, via which qualifying cryptocurrencies–those that are decentralized, proof-of-work-based, which exist for over a decade, with a market capitalization that exceeds $750 billion, currently only Bitcoin–can be paid as tax to the state. With that, North Carolina becomes one of those few states to allow cryptocurrency as a means to pay taxes, a sign of the times, right? People and companies can use, trade and hold cryptocurrencies under certain conditions, and there are strict measures to prevent fraud and protect consumers.

Regulatory Framework of Crypto-Field

North Carolina has implemented state-specific laws to govern the cryptocurrency industry that promote innovation while keeping consumer protection at the forefront of state policy. The table below highlights some of these laws in North Carolina.

Legislation	Year	Key Provisions
NC Digital Asset Freedom Act (H.B. 920)	2025	Permits tax payments with Bitcoin. Recognizes digital assets for economic exchange. Ensures institutional-grade liquidity and price discovery. Unique to North Carolina for tax payment integration.
NC Digital Assets Investments Act	2025	Establishes the North Carolina Investment Authority (NCIA) to oversee digital asset investments. Authorizes state retirement system to invest in cryptocurrencies, a rare state-level endorsement.
Digital Financial Assets Law	2023	Prohibits unauthorized digital asset businesses. Requires state-specific licensing and AML/KYC compliance.
Anti-Fraud Legislation	2024	Criminalizes virtual token fraud, illegal rug pulls, private key fraud, and nondisclosure of financial interests. Tailored to address crypto-specific scams in North Carolina.

North Carolina’s laws are supplemented by federal law, meaning that exchanges must first register as a money services business (MSB) with the Financial Crimes Enforcement Network (FinCEN) and are subject to compliance with the Bank Secrecy Act (BSA). For any securities tokens, they are subject to regulation by the U.S. Securities and Exchange Commission (SEC).

Exchanges and Exchanging Options

North Carolina is home to a thriving cryptocurrency ecosystem through which residents can trade with some of the world?s most well-known exchanges that are listed and regulated by the state and federal government. Popular exchanges include Coinbase for simplicity, quick transactions, and cryptocurrency wallets (a less secure place where you can keep your currency after you buy it), and Binance, which is another smartphone application with a horde of available cryptocurrency options. US, with competitive fees and staking, Kraken, which includes advanced trading such as margin trading, and Gemini, who focuses on security and compliance. Some ways to buy in North Carolina: exchange platforms (brokerages, such as brokers that exist with order books) like Coinbase, peer-to-peer (P2P) trading, cryptocurrency ATMs (including those in Raleigh and Charlotte, usually scammers, high fees, requires I.D.), and via over-the-counter (OTC) trading if moving serious money with sellers or buyers in NC.

Blockchain Innovation Hub

Now, Research Triangle Park (RTP), a hub of technology on a global scale, now the center of gravity for blockchain startups and cryptocurrency development. State universities, like Duke and UNC-Chapel Hill, are partnering with firms located in RTP to work on a range of blockchain projects from crypto payment systems to smart contracts. This system, offered exclusively in North Carolina, draws in crypto innovators and fuels specialized local exchanges based on state regulations, like RTP-based micro-exchanges for tokenized assets.

The Market for DeFi (Decentralized Finance)

There are no particular DeFi rules in North Carolina so you will have to follow federal guidelines- Decentralized Finance rules. Platforms such as Uniswap, Aave and Compound are available for liquidity pools, yield farming and lending, but their use comes with risks such as hacks and absence of centralized oversight. DeFi services may also need FinCEN MSB registration, and tokens might be deemed securities by the SEC. The state’s Anti-Fraud Legislation (2024) is aimed at DeFi scams (rug pulls), with the NC Digital Asset Freedom Act indirectly backing DeFi by defining digital asset status. North Carolina’s blockchain innovation hub in RTP is home to DeFi experimentation, as startups in the region launch dApps tailored to local use cases including financing for agricultural supply chain.

NFT (Non-Fungible Token) Market

NFTs are regarded as digital assets and are therefore are governed by state laws concerning digital assets and intellectual property. The NC Digital Asset Freedom Act legitimizes these qualified NFTs, and the SEC has the power to deem a particular NFT a security. NFT scams are already addressed by the state’s virtual token fraud laws. NFTs can be created and traded on platforms like OpenSea, Rarible and Foundation, with artists in Asheville using NFTs related to digital art associated with North Carolina’s rich cultural scene. Gaming NFTs are under scrutiny for gambling-like mechanics. Then there’s the North Carolina NFT Art Initiative, a state-backed effort that debuted in 2025 to get local artists sold on NFT marketplaces, to mesh the state’s cultural heritage with blockchain, to put up on the blockchain, say, Appalachian folk art tokenized on Ethereum.

Useful Information

• North Carolina Department of Revenue: Advice on paying tax via Bitcoin.
• North Carolina Secretary of State: Tokens securities regulations.
• Research Triangle Park Blockchain Consortium: United crypto startups and thinkers.
• North Carolina NFT Art Initiative: Assists artists in the state in creating NFTs.
• Raleigh Blockchain Meetup: Networking and educational events.

Conclusion

North Carolina’s forward-looking cryptocurrency laws, represented by the NC Digital Asset Freedom Act allowing you to pay your taxes with Bitcoin, and the NC Digital Assets Investment Act, an institutional-grade investment infrastructure, are paving the way for digital asset adoption across the U.S. A hub for blockchain in the Research Triangle Park, and the North Carolina NFT Art Initiative also set the state apart by promoting innovation and creative integration. Large exchanges, including Coinbase and Kraken, and a full spectrum of exchange methods have reinforced a vibrant market, even as DeFi and NFT markets expand under federal supervision and state anti-fraud safeguards. They are striking a balance here that benefits industry and innovators.” This is a win-win for the state of North Carolina as it is serving the industry that is not only in the state, but across the nation!