The new California crypto business regulation calls for $50000 penalty punishment

The latest cryptocurrency and blockchain regulation bill proposed in the Californian assembly is dubbed the Bill 1489. The bill was proposed by one of the majority ruling leader Ian Claderon. The bill entails all the businesses done with the residents of California or on their behalf using any kind of virtual currencies. This would mean that all cryptocurrencies, digital currencies, and stablecoins would be governed and regulated through this bill, given the bill is approved.

The bill proposed that every individual and organization should be made liable for registration from the Department of Business Oversight. Anyone found operating without a proper license and registration from the said department shall be persecuted as per the law. The bill also proposed that the violation shall result in a penalty of up to fifty thousand dollars a day ($50,000) for the businesses.

Who is exempted?

The bill, however, exempts individual personal use of the cryptocurrencies including Bitcoin and other cryptocurrency holding as well as well, businesses with a proper license, data and security providers, individual investors. Purchase of products and services for personal and home, as well as academic use, is also exempted from any penalties under the new regulations.

Who is liable?

The regulation, however, would hold anyone dealing in cryptocurrencies, digital currencies and any form of “digital representation of value, may that be in a game or gaming platform would be held responsible.

Similarly, representation of a virtual asset or currency for another company also falls under the law. And any “legal tender” for an entity that originally offers the digital representation of the value is also liable.