California’s version of BitLicense is poised to make a return in the state Legislature under a new proposal, Assembly 1123.
Introduced by Assembly Member Matt Dababneh, AB 1123 seeks to thwart—again—the use of digital currencies like bitcoin in the state. Dababneh, if you recall, was responsible for introducing the California Bitcoin License bill (AB 1326) in 2015, which sought to have virtual currency companies regulated just like banks.
Had it passed in the legislature, AB 1326 would have required bitcoin businesses in California to acquire a license, one that is renewable every year, from the Department of Business Oversight. Lawmakers, however, sent the bill back to the Rules Committee and Banking and Finance Committee, where it underwent “significant change.”
Now Dababneh is back, and armed with AB 1123—which, essentially, is an improved version of AB 1326. Based on its wordings, AB 1123 has the potential to reduce California’s capability of supporting the virtual currency start-ups in the state.