New California digital currency bill is a step backwards

BY PETER VAN VALKENBURG & JERRY BRITO @ coincenter.org

[Editors note: The Bitfinex hack showed the risk of heteronomous regulatory interference in a system, platform and technology that regulators do not understand.

But this will not stop regulators determined to either take their cut and or hinder a disruptive technology on behalf of banking powers]

  • “Enrollment costs $5,000 and failure to enroll can result in fines of up to $25,000 per offence. The DBO can levy fines or revoke one’s enrollment without judicial review. If you are not allowed to do X unless you get Y from the state, then—”enrollment” branding aside—you might as well call Y a state license to do X”
  • “The bill has a loose definition of “digital currency business” and can easily be interpreted to mandate “enrollment” of several parties beyond the exchanges and hosted wallet providers who we can all agree present genuine consumer protection risks to customers”

Read more here..

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