California approves virtual currency regulation

The California Assembly has recently approved virtual currency regulation that would require bitcoin businesses to apply for a license with the California Department of Business Oversight, according to a report by the Sacramento Bee. The approval of Bill AB-1326 is the latest development in U.S. bitcoin regulation since the release of New York State Department of Financial Services’ BitLicense on June 3.

“This bill would authorize the commissioner (of Business Oversight) to examine the business and any branch office of any licensee to ascertain whether the business is being conducted in a lawful manner and all virtual currency is properly accounted for,” the bill’s text says. “The bill would require a licensee to file a report with the commissioner within a specified period of time after the licensee knows about the occurrence of certain events relating to the virtual currency business and those persons connected to that business, and to also maintain records as required by the commissioner for a specified period of time.”

The bill will be sent to the California Senate for approval. If approved, it will then be sent to the Governor who can approve or veto it.

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