Coin Center and the EFF Square Off Over Proposed California Digital Currency Business Licenses
The ongoing debate about the role of governments in regulating digital currencies isn't going away anytime soon. While the dustup over New York's BitLicense program continues, another front has opened up in California where a member of the state assembly has introduced a bill to regulate California's digital currencies businesses. The Washington, D. C.....
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A proposed California law to regulate virtual currency has drawn mixed reactions from industry advocates, in stark contrast to the New York BitLicense that met united industry opposition. AB 1236 sponsored by Assemblyman Matt Dababneh requires virtual currency companies to be licensed. The measure passed the Assembly in June and awaits Senate action. The Electronic Frontier Foundation (EFF), based in San Francisco, has launched a petition opposing the measure. Coin Center, a Washington, D. C. -based group, supports the bill, calling it a cautious and well-researched approach to virtual....
The state of California is once again moving forward with legislation that would update its money transmitter rules to capture businesses engaged in digital currency activities. Deemed inactive last September, Assembly Bill 1326 was re-introduced by the legislature this week and has since been read and amended. Given the discussion that surrounded earlier versions of the bill, the update is already being scrutinized, though signs suggest pros and cons remain. Most notably, the bill no longer proposes to license businesses engaged in financial applications of the technology, but would....
Following New York's BitLicense implementation a few months back, California is now drafting up its own bitcoin regulation as well. Not surprisingly, this drew plenty of opposition among cryptocurrency enthusiasts in the state. Interestingly enough, there is also a split among those criticizing California's bitcoin regulation. Last week, Coin Center executive director Jerry Brito tried to distance his organization from the Electronic Frontier Foundation (EFF) and the Copia Institute. California Bitcoin Regulation Debate. Back when the draft of AB-1326 was filed in the Senate Committee on....
The divided regulatory policies and frameworks on digital currencies, including Bitcoin, in the United States have created an impractical ecosystem for startups to operate in. The country’s state-by-state regulations for money transmission licensing has led to an unclear regulatory framework for digital currencies, with some states, including North Carolina, New Jersey and California, establishing regulations in favor of digital currency startups and businesses, while others, such as New York and Connecticut, require startups to obtain expensive licenses to operate as legal entities. This....
A digital currency bill has been proposed and amended in the state of California, easing the burden for bitcoin startups. The initial proposal required individuals and companies offering services that involve bitcoin or other digital currencies to first obtain a license. However, this could wind up stifling innovation and being too costly for bitcoin startups. With that, the revised version enables small-scale business concepts to receive conditional approval from the state's Commission of Business Oversight under the state's Money Transmission Act. Lower Burden on Bitcoin Startups.