The Aquarian Advocacy Group (TAAG), which has only just launched, has decided to campaign against the proposed Uniform Regulation of Virtual Currency Businesses Act, currently being debated upon by the Californian State Assembly. The advocacy group believes that the law, if passed, could prove disastrous for the not only the cryptocurrency scene in the U.S. but all of the world.
As per the bill, virtual currency companies would have to seek permission from California’s Department of Business Oversight (DBO) to be able to run any operations within the state. They would also have to share all user and transaction information with the regulator, which the regulator would then be able to share with other regulators or foreign governments, shall they wish to do so.
Margaux Avedisian, Executive Director of TAAG, does not comprehend how anyone in the cryptocurrency industry could support the passage of such a proposed bill. Any merger or acquisitions by a cryptocurrency business would have to be consulted with the DBO first, irrespective of company size. Infact, the regulator would also be required to sign off on any changes made to a company’s personal business strategy.
Avedisian is strictly against such a regulatory agency where the regulator could place any condition it choose on crypto companies. The companies would also have to pay to enforce the new regulation, according to the bill. A $50,000 penalty can be charged to companies, for every day that they fail to comply.
California will be majorly affected by the new law. The state has a thriving cryptocurrency industry and was one of the first to allow the use of digital currencies for purchasing goods and services. Avedisian says that the regulation in itself poses no problem, it is the manner in which the regulation is being proposed that is flawed. He believes the law would prove “innovation crushing” and force crypto companies to migrate from California and move elsewhere.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.