California Set to Consider Virtual Currency Guidelines

Virtual Currency

On February 27, California Assembly Member Matt Dababneh introduced AB 1326, which would provide guidelines for individuals or businesses who conduct business using virtual currency. The legislation would prohibit a person from engaging in any virtual currency business activity unless licensed by the Commissioner of Business Oversight or unless otherwise exempt. The application process would require applicants to provide detailed information and pay a $5,000 application fee to the Commissioner of Business Oversight. Licensees would be subject to capital requirements, with a certain amount of capital held in high-quality, investment-grade investments, and would be required to maintain consumer protections.