Topic: [2016-08-09] Revised California Bill AB 1326 Makes BItLicense Look Soft (Read 318 times)

I am not a business owner and I not that well familiar with financial laws. But aren't these requirements basically the same for normal FIAT powered businesses?

Regulation in the Bitcoin world is a double-edged blade. On one hand, it can bring more legitimacy to cryptocurrency as a whole. Doing so may also increase Bitcoin’s appeal to mainstream consumers. On the other hand, regulation can also kill off innovation in the cryptocurrency space. The Californian version of BitLicense – called AB 1326 – has been revived, and it is looking worse than before.

About a year ago, the state of California started drafting its own Bitcoin regulation. Using the New York Bitlicense as a basis, it quickly became apparent this proposal would nip innovation in the bud. Thankfully, the AB 1326 proposal failed to pass, and numerous veto requests were recorded.

Unfortunately, that does not mean bill AB 1326 disappears into the obscure. In fact, government officials have revived the bill and made it even worse than before. While some people might argue regulation for Bitcoin is positive, this bill goes to show it can have a negative impact as well.

To make matters even worse, AB 1326 has already passed the Assembly and is now on the Senate’s Second Reading. Their next meeting is scheduled for later today, and every Bitcoin enthusiast should oppose this idea. Doing so can be done through by various means, which are outlined here.

One of the AB 1326 excerpts reads as follows:
“The bill would authorize the commissioner to require an enrollee and its agents to submit surveys, investigations, and questionnaires for the purpose of gathering information and to ascertain detailed facts about the enrollee’s business model, capitalization and net worth, and cybersecurity, among other things. The bill would require an enrollee and its officers, agents, and employees to make the enrollee’s accounts, books, correspondence, and other records available upon request and to facilitate the commissioner’s fact-gathering.“

If AB 1326 would come to pass and become law, it will all but kill Bitcoin innovation. Moreover, it would set a very dangerous precedent for other US states and governments to embrace a similar strategy. Limiting economic freedom is never in the best interest of businesses and consumers.

Unfortunately, that does not mean bill AB 1326 disappears into the obscure. In fact, government officials have revived the bill and made it even worse than before. While some people might argue regulation for Bitcoin is positive, this bill goes to show it can have a negative impact as well.

http://fintechist.com/revised-california-bill-ab-1326-makes-bitlicense-look-soft/