California Looks to Regulate Cryptocurrency Much Like Banks

[MicroGuy]

"California's State Assembly has approved a bill calling for digital currency companies to be regulated in a similar way to banks.

Formulated by Assemblyman Matt Dababneh, chairman of California's Banking and Finance Committee, bill AB-1326 was approved following a 55-22 vote in favour.

Currently undergoing review by California's Senate – having already completed the first of three readings – if passed, the bill would require digital currency businesses to obtain an annually renewable license from the Department of Business Oversight (DBO), unless they are exempt from doing so by the agency.

As previously reported by CoinDesk, license applicants would incur a $5,000 non-refundable registration fee; would be required to complete an application which includes identifying any previous virtual currency services provided by the applicant.

According to California's legislative process, if the bill is approved by the Senate, it will proceed to the state's Governor who can either sign it into law, allow it to become law without a signature or veto it.

A vetoed bill can be overridden by a two thirds vote in both houses. If it does become law, most bills typically come into effect on the first day of January of the following year."

Full Story: http://www.coindesk.com/bitcoin-regulation-bill-approved-by-californian-state-assembly/

[tvbcof]

Way to many people in the Bitcoin ecosystem have adopted the strategy of playing nice with TPTB and thinking that if we just give the regulators most of what they ask for they will be our friends.  Classic battered wife syndrome.

I lobbied for years that Bitcoin should develop under the basic concept that it is a guerrilla currency which jealously guards it's position of theoretical strength.  Had that occurred I would not have made as much money on it, and perhaps none at all, but I'm sure it would be much better positioned to join the engage in genuinely important struggles on the horizon.

Bitcoin's biggest utility for TPTB was that it retarded and confused the development of alts some of which are probably a much bigger threat.  I am surprised and impressed that they played the game so well, and it illustrates why the U.S. dominates more stodgy second tier powers around the world.  The Hearndresen XT fork will likely be the endgame play.  The best that what can technically be describe of as 'core' can hope for at this point is a draw and better results when the pieces are set up for the next game.

[celestio]

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

[jeannemadrigal2]

It seems to me that the end effect of this is that any business that does not like the regulation can easily set up in a different state or county.  Unlike with traditional banks that require addresses and identification, a bitcoin business can be partially anonymous and can be used by anyone with an internet connection.  For example if I don't want to give my information to Kraken for an account I can just go over to a Chinese exchange and do things anonymously.  Am I missing something, or is this regulation sort of pointless?

[neurotypical]

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

[spud21]

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

Yes it's probably impossible to fully regulate crypto, but they seem to be attempting to tax crypto businesses and take a cut of their proceeds via license fees. All the US states will probably develop their own bitLicense now and require you to buy one if you want to operate a crypto business there, or do business with its residents. That could quickly get very expensive.

[BTI4LIFE]

Way to many people in the Bitcoin ecosystem have adopted the strategy of playing nice with TPTB and thinking that if we just give the regulators most of what they ask for they will be our friends.  ....

>>>>>>  The Hearndresen XT fork will likely be the endgame play.  ...."

+1  you nailed it    :\

[BTI4LIFE]

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

np^haters will just wait at the "gates" for you to trade out to BTC then Fiat....*poof!* >>  nobrainer! ;-) easyyyyyy

[neurotypical]

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

Yes it's probably impossible to fully regulate crypto, but they seem to be attempting to tax crypto businesses and take a cut of their proceeds via license fees. All the US states will probably develop their own bitLicense now and require you to buy one if you want to operate a crypto business there, or do business with its residents. That could quickly get very expensive.

Even if they put regulations and force to inform every bank of any transaction that is suspicious of having a Bitcoin origin it would still be useless against transactions for cash in person like LocalBitcoins.

[yayayo]

Way to many people in the Bitcoin ecosystem have adopted the strategy of playing nice with TPTB and thinking that if we just give the regulators most of what they ask for they will be our friends.  Classic battered wife syndrome.

I lobbied for years that Bitcoin should develop under the basic concept that it is a guerrilla currency which jealously guards it's position of theoretical strength.  Had that occurred I would not have made as much money on it, and perhaps none at all, but I'm sure it would be much better positioned to join the engage in genuinely important struggles on the horizon.

Bitcoin's biggest utility for TPTB was that it retarded and confused the development of alts some of which are probably a much bigger threat.  I am surprised and impressed that they played the game so well, and it illustrates why the U.S. dominates more stodgy second tier powers around the world.  The Hearndresen XT fork will likely be the endgame play.  The best that what can technically be describe of as 'core' can hope for at this point is a draw and better results when the pieces are set up for the next game.

Well said. You can't negotiate with a party that has all the power while you have none and expect it will stay true to the contract.
Bitcoin needs technological durability through privacy and decentralization. That the only safe route to keep it from being regulated to impracticality.

The sooner Gavin and Mike depart with their fully compliant altcoin the better.

ya.ya.yo!

[BTI4LIFE]

Way to many people in the Bitcoin ecosystem have adopted the strategy of playing nice with TPTB and thinking that if we just give the regulators most of what they ask for they will be our friends.  Classic battered wife syndrome.

I lobbied for years that Bitcoin should develop under the basic concept that it is a guerrilla currency which jealously guards it's position of theoretical strength.  Had that occurred I would not have made as much money on it, and perhaps none at all, but I'm sure it would be much better positioned to join the engage in genuinely important struggles on the horizon.

Bitcoin's biggest utility for TPTB was that it retarded and confused the development of alts some of which are probably a much bigger threat.  I am surprised and impressed that they played the game so well, and it illustrates why the U.S. dominates more stodgy second tier powers around the world.  The Hearndresen XT fork will likely be the endgame play.  The best that what can technically be describe of as 'core' can hope for at this point is a draw and better results when the pieces are set up for the next game.

Well said. You can't negotiate with a party that has all the power while you have none and expect it will stay true to the contract.
Bitcoin needs technological durability through privacy and decentralization. That the only safe route to keep it from being regulated to impracticality.

The sooner Gavin and Mike depart with their fully compliant altcoin the better.

ya.ya.yo!

^IN THE BILL IT MANDATES A 21MB BLOCKCHAIN! ;-) j/k LOLLLL

[Amph]

they know they can't fully regulate it, they are trying to squeeze it as a much as a possible, for increasing their profit via taxes

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

Yes it's probably impossible to fully regulate crypto, but they seem to be attempting to tax crypto businesses and take a cut of their proceeds via license fees. All the US states will probably develop their own bitLicense now and require you to buy one if you want to operate a crypto business there, or do business with its residents. That could quickly get very expensive.

Even if they put regulations and force to inform every bank of any transaction that is suspicious of having a Bitcoin origin it would still be useless against transactions for cash in person like LocalBitcoins.

not to mention that some altcoin are even unknown to us, let alone to them, one can just create another coin just to evade their regulation, another coin(which could be another monero, fully untraceable) that isn't covered by the bitlicence in that country

[BTI4LIFE]

they know they can't fully regulate it, they are trying to squeeze it as a much as a possible, for increasing their profit via taxes

Isn't a similar thing happening in NY and NJ? They're regulating the 3rd parties built around cryptocurrencies, not the cryptocurrencies themselves(As that's likely "impossible").

Yes it's impossible that they can regulate Bitcoin or any cryptocurrency as it is, specially Monero. How are they going to control transactions that don't show in any sort of ledger? good look with that lol.

Yes it's probably impossible to fully regulate crypto, but they seem to be attempting to tax crypto businesses and take a cut of their proceeds via license fees. All the US states will probably develop their own bitLicense now and require you to buy one if you want to operate a crypto business there, or do business with its residents. That could quickly get very expensive.

Even if they put regulations and force to inform every bank of any transaction that is suspicious of having a Bitcoin origin it would still be useless against transactions for cash in person like LocalBitcoins.

not to mention that some altcoin are even unknown to us, let alone to them, one can just create another coin just to evade their regulation, another coin(which could be another monero, fully untraceable) that isn't covered by the bitlicence in that country

not anymore we going to start going after scammers for fun!
<<<< try to list some newbie crap clone and see what happens ! lol ;-)