California has always been at the forefront of technological innovation but with an exciting twist this time. California is now moving to regulate cryptocurrency, but only in a limited way.
DBO on Virtual Currency Regulation
The state’s Department of Business Oversight (DBO) recently announced that it plans to issue new regulations for businesses that sell or exchange virtual currency. The DBO said it would hold public hearings later this month.
The Department of Business Oversight is also considering issuing licenses for virtual currency dealers, which would be required for those who buy and sell digital coins as part of their business, according to a press release. The state of California has previously issued licenses for money transmitters and payment processors, but this would be the first time it has done so for virtual currency dealers.
Overseeing the Virtual Currency
California’s move toward cryptocurrency regulation comes when many states are looking at ways to oversee digital currencies better. The Securities and Exchange Commission (SEC) recently said that it would consider whether digital tokens should be regarded as securities — potentially subjecting them to federal oversight — while Congress continues its investigation into whether there needs to be new legislation at the national level.
The simple and short takeaway from this regulation is that the state of California and its officials do not want to stifle innovation or hinder the development of blockchain technology. They believe in it and want it to flourish with appropriate oversight and consumer protection. We concur as it will only lead to more viable and legitimate blockchain platforms in the future.
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