A Group of Bitcoin Businesses Ask for Relaxed Startup Rules from California Senate

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A Group of Bitcoin Businesses Ask for Relaxed Startup Rules from California Senate

Looks like Bitcoin businesses are worried about the startup rules that are being framed by California’s Senate Banking and Financial Institutions Committee as to reduce the impact on the digital currency; they are writing a letter to them. It has come to notice that a group of Bitcoin businesses have drafted a letter for the purpose that contains all their concerns.

The letter that is addressed to the members of California’s Senate Banking and Financial Institutions Committee following the state’s most recent update of its proposed regulation for Bitcoin and digital currencies asks for relaxed approach. It has been signed by BitGo, Bitnet, Blockstream, Chain, Gem, Mirror and Xapo.

Though the letter praises the Senate for its most recent changes to AB 1326, particularly its elimination of certain redundant licensing and modification of its definition of “virtual currency business, it also asks for leniency towards the startups. The businesses called on California to go a step further before the regulation is ultimately passed.

They are asking the legislators to update certain language and remove additional burdens from early-stage industry startups. The text reads:

“We appreciate the addition of the provisional license and would like to continue to work with you on ways to expand it and grow the ability of small startups to innovate and flourish. As California is the home of many major tech companies started in a garage, our hope is to enable the next generation of entrepreneurs.”

The Bitcoin Businesses Want Reduced Restrictions on Startups

The Bitcoin companies in the letter have though showed their agreement with the policy; they want lenient approach towards the startups. Though the companies did not provide any additional clarity on specific changes they would like to see made to the provisions, it appears they are concerned about the licensing fees.

The legislators had earlier updated the law to allow businesses with less than $1m in obligations to register with only a $500 licensing fee. Apart from showing their concerns Bitcoin companies also called for additional clarification to language meant to deal specifically with multi-signature wallet technology, whereby the control of funds in a Bitcoin wallet can be shared by multiple parties.

The overall tone of the letter according to the Bitcoin companies is Bitcoin-friendly as they realize that California is wise to communicate with the tech community as it works to bring new jobs and opportunities to state residents and job seekers and help the digital currency at large.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com