California Moves Ahead With Burdensome Virtual Currency License

California may have a wealth of tech-savvy entrepreneurs anxious to create new businesses. But the state’s lawmakers aren’t doing them any favors as they move forward on a virtual currency license that saddles businesses with fees, paperwork and uncertainties.

Businesses would have to pay a non-refundable fee of $5,000 just to apply for the license from the Commissioner of Business Oversight. Which makes one wonder about the bill’s real intent.

The Golden State’s lawmakers aren’t taking any time to study the ramifications of New York’s recently-released Bitlicense before requiring their own virtual currency businesses to be licensed. Instead, the California Assembly recently approved AB 1326 requiring businesses that store and exchange virtual currency to be licensed. The bill now heads to the state Senate. Once the Senate approves the bill, it goes to the governor for signing.

Sponsored by Assembly member Matt Dababneh, D–Encino, AB 1326 passed the Assembly with bipartisan support.

The New York Department of Financial Services released its Bitlicense in April.

A ‘balanced approach’?

“AB 1326 is a balanced approach that will give

Read more ... source: CryptoCoinsNews