The State of California is all set to follow New York’s footsteps. The Golden State has drafted a new digital currency regulation along the lines of New York’s BitLicense and it will be voted upon soon. The California Bitcoin License assembly bill designated as AB 1326 was first introduced by the Assembly member Matt Dababneh . Since its introduction in the month of February last year, it has gone through multiple amendments in the assembly and senate. As the California legislature prepares to vote on the AB 1326 California Bitcoin License, digital currency community and businesses in the region have raised their concerns. Bitcoin is a relatively new ‘disruptive’ digital currency. Both Bitcoin and its underlying blockchain technology have a huge potential to change the whole economic system, undermining the authority of government and conventional financial institutions. This combined with its potential uses in money laundering and terrorist financing has driven governments to implement legislations to control the digital currency ecosystem. In order to exercise their control, companies working in the digital currency sector are being subjected to various rules and regulations. California Bitcoin License and New York BitLicense are examples of such regulations. At the same time, being a nascent technology, there are numerous applications of digital currencies which are still being explored. Unless these Bitcoin laws factor in the need for further innovation in the sector, they will end up causing more damage than good. Electronic Frontier Foundation has expressed its concerns about California Bitcoin License, which if passed in its current form will end up smothering the state’s Bitcoin ecosystem. The foundation has pointed out various shortcomings in the bill. Some of the concerns include The vague language used in the Bill fails to offer a proper definition of ‘virtual currency business’. While smaller companies and […]
