California amendment to Money Transmission Act a benefit to Bitcoin
California’s AB 786, a piece of legislation that will make doing in-state business easier for Bitcoin startups, passed in early September. This amends California Money Transmission Act with a couple of key points: Businesses that pay their employees’ salaries in Bitcoin might qualify for a payroll exemption. Minimum capital requirements are reduced for a Bitcoin startup that operates in the payments or remittance markets. The MTA initially imposed strict requirements on California-based business classified as money transmitters, and these are enforced by the Department of Business....
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The Bitcoin Foundation has published a reply to the cease and desist order that the organization received on May 30 from California's Department of Financial Institutions. The cease and desist order was a vague one, telling the foundation to "cease and desist from the business of conducting money transmission in this state" without specifying what the foundation was actually doing that qualified as money transmission. There was little to go on; the Bitcoin Foundation is simply an advocacy organization that "standardizes, protects and promotes the use of Bitcoin cryptographic money for the....
The State of California has passed legislation that should make it easier for bitcoin startups to do business in the state. AB 786, passed in the house last week, amends the California Money Transmission Act with some key provisions. The state's original Money Transmission Act (MTA) classified certain companies doing business in California as money transmitters, imposing stringent requirements on them before they could do business in the state. This legislation is enforced by the Department of Business Oversight (DBO), part of which until July 1 was known as the Department of Financial....
The California Department of Business Oversight (DBO) has released a statement denying that Coinbase's new exchange is licensed to operate in the state under existing money transmission laws. In a press release, the state's financial services and money transmitters regulator called unnamed press reports that have stated that Coinbase had received regulatory approval to operate its exchange in California mistaken. In its statement, the agency said it was seeking to "correct erroneous reports that Coinbase Exchange has received regulatory approval from the State". DBO Commissioner Jan Lynn....
An article on Forbes.com by Bitcoin Foundation Board Member and Secretary Jon Matonis announced today that the Bitcoin Foundation had been the recipient of of a "cease and desist" letter from the State of California's Department of Financial Instututions(DFI). The letter alleges that the "BitCoin Foundation" is operating as a money transmitting business without "proper authorization." It proceeds to threaten "APPROPRIATE ACTION" if the Foundation fails to "CEASE AND DESIST FROM CONDUCTING THE BUSINESS OF MONEY TRANSMISSION" in the State of California, and requires a response in writing....
The California State Senate and Assembly passed a bill in early September that amends the state’s Money Transmission Act. The bill was designed to modernize old laws in light of new technologies — Bitcoin was specifically mentioned — and “remove barriers to market entry to start-up payment technology companies,” said Committee on Banking and Finance Chair Roger Dickinson. Dickinson first introduced the bill in February. Here are the three things that could benefit Bitcoin companies if Gov. Brown signs it into law: