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 – AB 1326 – was first introduced by the Assembly member Matt Dababneh in February 2015, and has since gone through multiple amendments in the assembly and senate. As the California legislature prepares to vote, 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