A bill introduced to the California legislature aims to bring virtual currency businesses more clearly under the state’s Money Transmission Act.
Penned by Assemblymember Matt Dababneh, chairman of the state’s Banking and Finance Committee, 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 $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.
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