California’s Version of BitLicense Returns As Legislative Proposal AB 1123

Policymakers continue to oppose bitcoin and cryptocurrencies in certain regions of the world. California legislators have tried to introduce their version of BitLicense a while ago. Luckily, those plans were shot down relatively quickly, not once, but twice. It appears a new proposal under the name AB 1123 has come up, with touches upon the topic once again. This bill needs to be opposed by the people once again.

It was to be expected Californian policymakers would not give up on opposing bitcoin so easily. Assembly Member Dababneh is a clear opponent of cryptocurrency as a whole. His new Assembly Bill 1123 aims to once again thwart bitcoin usage in the state. A lot of the wording is a direct copy of AB 1326, which was opposed by the public twice already. It is evident the locals in California do not want a version of BitLicense, as there is no clear need for such harsh regulation.

To be more specific, AB 1123 is capable of bringing the bitcoin use to a near halt in the state. Dababneh’s wording can be interpreted in many different ways. However, it leaves little to the imagination of how bitcoin startups would be nearly outlawed. Moreover, businesses accepting bitcoin would need to meet additional regulatory requirements. Donations in bitcoin or other cryptocurrencies would be subject to harsh guidelines as well.

AB 1123 Needs To Be Opposed

It is evident AB 1123 and AB 1326 are near copies of the same proposal. Introducing regulation on the same level as BitLicense will not do anyone any favors. In fact, a lot of companies are no longer active in New York state due to the bizarre regulatory requirements. The same can happen in California, assuming the bill comes to pass. It seems highly unlikely that will happen, though, since CA does not label bitcoin as money right now.

Politicians are still rather clueless when it comes to bitcoin and cryptocurrency. To be more specific, they simply try to oppose what they do not understand. Disallowing innovation to take root in California will only have an adverse effect. It is now up to local bitcoin enthusiasts to openly oppose this proposal. That can be done either by asking Dababneh to withdraw the bill, although it is unlikely he will do so. Another option is through using EFF forms and contacting local legislators.

This latter method successfully defeated AB 1326 in its tracks not once, but twice. The Governor of California can veto this bill at any time, assuming there is enough demand to do so. This is the third attempt to introduce BitLicense in California. Thrice is usually the charm, but we can only hope this new bill will fall short as well. Otherwise, the bitcoin situation in California will become very dire rather quickly.

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