Bitcoin benefits from California state amending Money Transmission Act
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....
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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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