California are in the midst of fine tuning A.B. 1326, a regulatory framework on virtual currency introduced by Assembly member Matthew Dababneh on Feb. 27 2015. The regulation is similar to that of New York’s controversial BitLicense, it aims to protect consumers within the digital currency industry.
“This bill would require each licensee to maintain at all times such capital as the commissioner determines, subject to specified factors, is sufficient to ensure the safety and soundness of the licensee, its ongoing operations, and maintain consumer protection.”
In a similar reaction to the BitLicence, many in the industry are concerned this law may place unreasonable constraints on innovation. The Electronic Frontier Foundation (EFF), a California based nonprofit organization defending civil liberties in the digital world, have been highly critical of the new regulation.
“We have philosophical issues with A.B. 1326—both the type of regulatory scheme it’s proposing as well as the timing of this regulation in relation to the development of new virtual currency technologies—and we also have concerns about how the bill is technically written.”
The EFF was founded in 1990, in an effort to spearhead user privacy, free expression, grass roots activism, innovation through impact litigation and technological development. “We work to ensure that rights and freedoms are enhanced and protected as our use of technology grows.”
In an article on the organisation’s website, they outline their points of contention with the proposed bill. “While we sympathize with the ideals behind the legislation—protecting consumers—we fear this bill will have unintended long-term consequences that hurt consumers more than it helps.”
“California consumers might not benefit from ground breaking new developments in the virtual currency space, as
Originally appeared at: http://bravenewcoin.com/news/californias-bitlicence/