According to Cointelegraph, the bill’s Democratic backer, Assemblyman Timothy Grayson of Concord, has previously said he understands the passion surrounding cryptocurrencies and digital assets.
The present legal system is known as the Money Transmission Act. This act prohibits the operation of a money transfer firm without a valid license from the Commissioner of Financial Protection and Innovation. If approved, the new law would allow the government to do things like look into a licensee.
Crypto Could Face More Restrictions In California
California regulators have reportedly been actively watching the cryptocurrency market, according to Cointelegraph. In May, Newsom issued an executive order to harmonize the federal and state regulatory frameworks for blockchain. Lawmakers from the state also advised people to handle interest-bearing cryptocurrency asset accounts “very cautiously.”
In light of current CoinGecko research based on information from internet searches, Cointelegraph reported that California is the state most enthusiastic about Bitcoin (BTC) and Ether (ETH). It is becoming hotter in California for cryptocurrency. Additionally, the business community is cautioning California about what occurred in the Empire State.
Businesses trading in digital assets will be subject to licensing requirements under a measure that is waiting for Gov. Gavin Newsom’s signing. According to supporters, the idea would safeguard customers in a quickly expanding sector. The cryptocurrency sector worries that, similar to what happened in New York, it may cause a flight of cryptocurrency businesses from California. The state’s Department of Financial Protection and Innovation would need to grant licenses to companies providing services for buying, selling, or lending digital assets under the Digital Financial Assets Law.
