AB-1326 would prohibit virtual currency businesses from operating unless they are licensed by the Department of Business Oversight (DBO) or have received an exemption from the agency.
Similar to the general financial code, license applicants would need to pay a non-refundable USD 5,000 fee to register, provide certain identifying information, and keep a certain amount of funds in “investment-grade permissible investments”. The definition includes money market funds, state bonds and US government agency securities and excludes virtual currencies.
AB-1326 also contains a series of exemptions for US agencies, commercial banks and industrial banks, among other financial entities, a measure that has attracted early criticism.
Businesses that have already received a license to operate in California would be unaffected by the bill.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now