The cryptocurrency industry proved its worth once again after authorities dropped the impending centralization case of Bitcoin in California.
Since Bitcoin started penetrating the mainstream market, the state of California was one of the most welcoming places to accept Bitcoin. As of today, some of the most influential companies in the Bitcoin industry like Coinbase are based in California, hence crowning the state as one of the Bitcoin-friendly places in the world.
As a matter of fact, Californian Bitcoin users have achieved astounding developments during the progress of cryptocurrency. One of which is Bitcoin’s successful debut as a legal payment method in the state. This was made possible through the passing of AB-129 or conventionally called the currency bill that took place in June of last year.
This bill was approved by the California Senate Banking and Financial Institutions Committee, together with 52 Californian lawmakers. AB-129’s author Roger Dickinson said that the bill’s passing was intended for the benefit of modern-day transactions and that today’s society must embrace the incoming innovation of cash alternatives:
“This bill is intended to fine-tune current law to address Californians’ payment habits in the mobile and digital fields. In an era of evolving payment methods, from Amazon coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives.”
Bitcoin is now viewed as mainstream in the Golden State, which adds to more credibility on the realms of cryptocurrency. However, California took a re-route and began to formulate laws contradicting to cryptocurrency freedom.
Not so Bitcoin-friendly anymore
Matt Dababneh, the current head of California’s banking and finance committee, signed the passing of AB-1326, which requires all cryptocurrency-accepting businesses to be licensed by the Department of Business Oversight (DBO). If failed to do so, businesses will not be allowed to operate and tag them as illegal.
Moreover, owners must conform to the non-refundable registration fee worth $ 5,000 and meet the required business criteria, together with the needed documents for licensing. However, as harsh as AB-1326 sounds for Bitcoin, the bill’s objective is to build security barriers for Bitcoin transaction, which is a measure to prevent the infamous Mt. Gox incident.
Nevertheless, Dababneh’s concern about Bitcoin legality and security seemed to be farfetched due to the fact that this bill totally negates the essence of cryptocurrency’s ‘decentralized’ environment.
Sudden change of heart
After months of discussions and debates prior to the complete passing of the centralization bill, DBO has come up with the verdict not to regulate cryptocurrency under today’s regulation laws. Instead, authorities will request the legislature to formulate specific guidelines for Bitcoin and altcoin transactions.
According to DBO spokesperson Tom Dresslar, it is still too early to close doors for Bitcoin, and the subject of Bitcoin regulation is still a hot topic among experts. He then suggest that authorities should wait and let Bitcoin do its part in letting the mainstream market evolve before taking any unnecessary judgments toward the cryptocurrency.
Dresslar voiced out his thoughts in an email to Bloomberg:
“It remains to be seen whether Bitcoin and the virtual currency industry will fulfill the growth prospects forecast by backers. Prudence dictates we take a deliberate approach and let the market further develop. That will better ensure any regulatory regime California ultimately adopts works effectively for consumers, businesses and the market.”
As of today, Californian authorities, particularly DBO, have dropped all actions regarding cryptocurrency regulation, which in effect, lets Bitcoin users in the state carry on with their respective businesses.
California and Bitcoin gambling
Bitcoin’s journey throughout the Golden State’s law department certainly made an impact on a number of Bitcoin users, especially Bitcoin gamblers. Nevertheless, the Bitcoin casinos players in California are now relieved of such tension as authorities have dropped the impending regulation.
This enables Bitcoin casino Dreamland Casino and sportsbook Casino Bitco.in among others to house California-based sports bettors on their platforms and let them explore their endless opportunities to play and win in different Bitcoin games, adding more thrills in the online betting scene in the US.
Overall, the Bitcoin gambling industry still presents great responses despite the rocky journey of Bitcoin in California. Moreover, legal authorities such as California’s DBO view Bitcoin as today’s greatest innovation that can alleviate every error on the mainstream market.
Meanwhile, with talks of accepting Bitcoin still on the table, many begin to ask more about crypto tax policies.