California Lawmaker: Bitcoin Thefts Show Industry Regulation Needed
The state assemblyman behind efforts to regulate digital currency businesses in California cited the $65m hack of Bitfinex this week as evidence of the need for tighter industry controls. In a statement issued following his state's decision to temporarily shelve further regulatory deliberations this year, he said that more time was needed to strike a balance between giving virtual currency businesses a firm foundation and ensuring consumers are protected. Assemblyman Matt Dababneh said in the statement: "Today, a user of virtual currency has no protection from loss, and businesses....
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California won’t become the second state after New York to have a “BitLicense” type of law any time soon. The lawmaker who introduced AB 1326, California Assembly member Matt Dababneh, D-Encino, has shelved it, marking the second straight year such legislation has been sidelined. After several conversations and meetings with virtual currency experts, consumer organizations, and others, he said he decided to remove AB 1326 from consideration for a vote this year, saying more time is needed to study the measure. The use of virtual currency has become more prevalent statewide, he said, but as....
The now-renamed California department responsible for the regulation of financial services will soon have more powers to supervise the cryptocurrency industry.
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....
Although home to a sizeable majority of the burgeoning bitcoin industry, California has been relatively quiet on the subject of whether it will seek to regulate digital currency businesses. However, this could soon change, according to new statements from California's Department of Business Oversight (DBO), the state's financial services and money transmitters regulator. Speaking to CoinDesk, spokesperson Tom Dresslar confirmed his agency intends to hold a meeting in mid-December that could determine if and when California will decide to clarify the actions the bitcoin industry must take....
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....