Stop AB 1326—California’s Bitcoin License

The Virtual Currency License is Bad for Business, Innovation, and Privacy

Vague language. Technical inaccuracies. Unanswered questions about which types of companies will be affected. All to regulate virtual currencies, which are still in the very earliest stages of development.

The California legislature is soon going to vote on AB 1326 (Dababneh)—a bill that would require “virtual currency businesses” to apply for and obtain a license in order to offer services in California, and it includes significant fees and administrative hurdles. Unfortunately, the bill’s language is so vague that it’s unclear what companies even count as “virtual currency businesses.” So despite the bill’s carve-outs for smaller companies and software developers, the proposal threatens the future of virtual currency experimentation and innovation in the state.

The bill also gives incredible discretion to the Commission of Business Oversight to reject licenses for almost any reason, with no explanation and no administrative appeal. And it requires detailed and wholly irrelevant data from applicants as part of the licensing process.
This bill could chill virtual currency innovation in California, and the legislature is likely to vote on it in the next couple of weeks. Please speak out today.