AB-1326, if passed, would require individuals and companies offering services that involve Bitcoin or other digital currencies to first obtain a license. A new draft version of the bill, was amended and re-referred to the California Senate Committee on Banking and Finance after it passed with a 55-22 vote in the State Assembly.
Under the proposed law, those seeking licensure would be required to register with the US Financial Crimes Enforcement Network (FinCEN). Additionally, provisional approval would be subject to a process that would consider anticipated transaction volume, existing risk mitigation strategies and the overall nature of the business.
The updated text also redefines what constitutes ‘virtual currency business’, reducing its scope from a previous definition that would have captured any entity that maintained ‘full custody or control of virtual currency in this state on behalf of others’ or offered exchange services to Californian citizens. Under the new definition, exchanges would not be required to seek licensure.
The new version also adds provisions for transaction receipts and license conversions.
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