Members of the California State Assembly supported bitcoin regulation bill introduced by Matt Dababneh. Now the document passed to the Senate of the state.

According to the official dossier, the Assembly members voted on the document on 3 June. 55 Assembly members supported it, 22 were against it and 5 abstained from the vote.

Now the bitcoin regulation bill is in the Senate of the state awaiting the first reading.

This March, the California State Assembly member Matt Dababneh has proposed a bill on virtual currency as an addition to the Money Transmission law that regulates all activities related to money transmission in the state. Under the current law, anyone who wishes to engage in money transmission has to be licensed by the Commission of Business Oversight and pay a specified fee. The regulator also requires businesses to deposit a certain amount of funds as security for the money they transmit.

The proposed bill suggests that any virtual currency business should be regulated under the same law and licensed by the same regulator under the same requirements. An applicant for a license will have to pay a fee of $5,000 and provide essential information about their business.

In May, the California Department of Business Oversight (CDBO) has decided against any regulation of digital currency under the existing rules. Instead it will adapt a wait-and-see attitude and ask the legislature to take up the issue, Bloomberg reports.

Tom Dresslar, the spokesman for the agency, said:

“It remains to be seen whether Bitcoin and the virtual currency industry will fulfil the growth prospects forecast by backers. Prudence dictates we take a deliberate approach and let the market further develop. That will better ensure any regulatory regime California ultimately adopts works effectively for consumers, businesses and the market.”

Members of the Assembly did not agree with CDBO and supported the document which introduces bitcoin regulation in the state. This happened a day before Benjamin Lawsky published BitLicense in New York.

 

Roman Korizky