The "BitLincese" bill is currently awaiting California Governor Gavin Newsom's approval and signature.
A new crypto-focused measure may be introduced by the
California state government to make the legal framework surrounding the
industry more clear. This law, known as "BitLincese," requires
cryptocurrency exchanges to apply for and get operational licenses in the
state. The legislation would also mandate that stablecoin issuers hold a bank
charter. According to the most recent "Worldwide Crypto Readiness
Report" by Foresx Suggest, the United States is currently the second-most
crypto-friendly country in the world, behind Hong Kong.
The law is currently awaiting California Governor Gavin
Newsom's approval and signing.
"The licensing elements of the bill are intended to
impose the same kind of onerous licensing and reporting framework that has
stifled the development of the cryptocurrency industry and restricted access to
secure and dependable crypto products and services in New York. The Blockchain
Association, an industry trade group, detailed the Californian law in a Twitter
thread. "In addition, it would make it impossible for many stablecoin
issuers to operate within the state to generate significant economic activity
and bring countless jobs to the state," it added.
According to a Coindesk story, Newsom has until September
30 to approve or veto the legislation.
A similar bill to control the cryptocurrency industry in
its jurisdiction was also approved by the state of New York earlier in 2015.
According to Assembly Member Timothy Grayson (D-Concord),
the bill's sponsor, "While the novelty of cryptocurrencies is part of what
makes investing exciting, it also makes it riskier for consumers because
cryptocurrency businesses are not adequately regulated and do not have to
follow many of the same rules that apply to everyone else."
Although the US has not yet passed rules governing the
cryptocurrency industry, the country's law enforcement agencies are actively working
to protect the crypto community from unanticipated financial hazards.
For instance, the US Federal Reserve provided new
instructions for banks thinking about engaging in cryptocurrency-related
operations back in August, emphasizing that businesses must contact the Fed
beforehand and ensure that anything they do is legal.
In the supervisory letter, the Fed advised banks it
regulates to take a number of precautions before engaging in any crypto-related
activity, such as confirming that any proposed activities were lawful and that
any necessary filings were required.
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