According to Cointelegraph on May 20, South Carolina Governor Henry McMaster has recently formally signed Senate Bill S.163, providing legal protection for individuals to self-custody bitcoin, prohibiting discriminatory taxes on bitcoin, and including provisions to protect proof-of-work (PoW) mining activities.
Three Key Provisions Confirmed in the S.163 Bill
As confirmed by Cointelegraph, the S.163 bill covers the following three core protections:
Self-Custody Protection for Bitcoin: Protects individuals’ right to self-custody bitcoin, meaning holders’ lawful control over their own private keys
Ban on Discriminatory Taxes: Prohibits discriminatory taxes on bitcoin, ensuring bitcoin is not treated differently under the tax code
Proof-of-Work Mining Protection: Includes provisions to protect proof-of-work (PoW) mining activities in the state
Legislative Confirmation Process Facts
As confirmed in the report: After the bill was passed by the South Carolina state senate, it was formally signed by Governor Henry McMaster. The exact effective date of the bill was not specified in the report, and the full text of the bill will be published later.
Frequently Asked Questions
What does the “self-custody” protected by the S.163 bill specifically refer to?
According to the bill’s description, “bitcoin self-custody” means that individuals hold and control their own bitcoin private keys, rather than entrusting the assets to a third-party custody institution. This protection clearly establishes individuals’ lawful right to hold bitcoin private keys in South Carolina.
What does “discriminatory taxes” mean in this context?
Based on the bill’s protection provisions, “discriminatory taxes” refers to differential taxation specifically targeting bitcoin, distinct from the general tax standards applied to other categories of assets. The bill prohibits imposing such differential taxes on bitcoin.
How does the S.163 bill affect bitcoin miners in South Carolina?
Under the bill’s provisions, proof-of-work (PoW) mining activities are legally protected in South Carolina, meaning lawful operation of bitcoin mining will receive legislative safeguards. The specific scope and conditions of the protection will require further clarification from the full bill text.
