The state’s lawmakers have decided not to pass the controversial bill on cryptocurrency regulation similar to BitLicense. The document has been sent back for revision.
California State Assembly has once again postponed the imposing of limitations on the crypto industry, as it sent the Assembly Bill 1326 proposing mandatory licensing for companies operating with virtual currencies back for revision. After nearly a year of preparation, the bill was returned to Banking and Finance Committee of the California State Assembly.
According to the current version of the document, all cryptocurrency companies operating in California would be obliged to get a license from the Department of Business Oversight. A similar system is already in application in New York, where businesses working with digital currency are required to have a BitLicense. The cost of the Californian license was supposed at $5,000. In the case of adoption, the bill would affect the operation of cryptocurrency exchanges and wallets, as well as node operators, miners and key providers registered in the state.
AB1326 was first introduced to the state Senate in 2015 but faced resistance from the bitcoin community. After prolonged discussions, the document has undergone significant changes but not enough to satisfy the legislature.
According to the Banking and Finance Committee spokesman Mark Farouk, the bill is unlikely to be passed this year. “I think there's going to be a lot of things that are going to be modified,” he noted.
The Bitcoin Foundation stands against the adoption of the bill, with its representative Colin Gallagher urging to sign a petition against the law.
The main complaint of the bitcoin community against the new regulation is that the language used in the bill is too vague. This will lead to misunderstandings and confusion in the work of cryptocurrency companies, the Bitcoin Foundation believes.
The Californian legislature is in general favourable to the development of cryptocurrency technologies. Since 2015, a law has been in force in California allowing the circulation of funds different from the national currency.
Elena Platonova
