Tag Archives: virtual currency

CA Financial Services Related Bills

contract-iconVirtual Currency Act

AB 1326 (Dababneh) as amended 7.6.15

Adds Financial Code 26000 licensing for virtual currency

Creates requirements for persons engaged in any virtual currency business to either obtain a license or qualify for an exemption from licensure to operate in California. Under AB 1326 “‘virtual currency business’ means maintaining full custody or control of virtual currency in this state on behalf of others.”

Virtual currency businesses would be required to pay a $5000 application fee, complete the application form, maintain a trust account/bond to benefit consumers, provide a specified receipt to consumers, submit to examinations. Violations are subject to civil penalties.

Additionally, a virtual currency business in good standing may be eligible to convert their virtual currency business license to a money transmission license under the Money Transmission Act provided meeting certain criteria, which includes “conducting [a] virtual currency business with less than $1,000,000 in outstanding obligations and whose business model, as determined by the commissioner, represents low or no risk to consumers to register with a $500 license fee and, if approved, receive a provisional license to conduct virtual currency business.”

The bill also provides for a provisional license for virtual currency businesses “with less than one million dollars ($1,000,000) in outstanding obligations and whose business model, as determined by the commissioner, represents low or no risk to consumers may register with a five-hundred-dollar ($500) license fee with the commissioner”  They must register with FinCEN as a money services business, if applicable.

Finder’s Fee for Pilot Program for Increased Access to Responsible Small Dollar Loans

SB 235 (Block)

Would increase compensation to finders (entities that bring borrowers and licensed lenders together) from $45/40 to “no more than $70” per loan

The bill would also “require a licensee to provide the commissioner with prescribed information relating to each finder, including, but not limited to, the finder’s delinquency rate and default rate, and would authorize the commissioner to take prescribed action against a finder that is found to be in violation, including, but not limited to, disqualifying the finder from providing services under the pilot program.”

Creates Bank on California under DBO 

AB 1292 (Dababneh)

Various changes to Data Breach Notification Laws

SB 570; AB 83; AB 259; AB 964

 

Bitcoin Roundup

DIGSOUTH_ShaneSnowQA_042913There is SO much dialogue around digital currencies/virtual currencies/cryptocurrencies, of which Bitcoin is front and center. Here are a few articles I’ve found particularly interesting:

1.  A VC’s perspective: Why Bitcoin Matters – Marc Andreesen’s NYT Op Ed

2.  What’s new in the regulatory world stateside: New York Regulators Promise Tough Bitcoin Rules – Bloomberg

3.  New currency meets old hardware (Bitcoin ATMs): Bitcoin ATM coming to the U.S. -CNN

4.  Bitcoin is not immune to hackers: Bitcoin Exchange Mt.Gox Apologies About Crippling Hack – Reuters

And, I saved my favorite for last:

5.  Follow Bitcoin’s ups and downs with PYMTS’ Bitcoin Bubble Tracker.

Reflecting on Payments at Year’s End

This is not original content, but I wanted to commemorate the end of an active year in payments.  The Atlanta Fed’s Blog Portals and Rails has a great list, so why reinvent the wheel?:

As the year draws to a close, the Portals and Rails team would like to share its own Top 10 list of major payment-related events that took place in the United States this year.

  1. The Consumer Financial Protection Bureau finalized Dodd-Frank 1073 money transfer rules.
  2. The payments industry experienced increased regulatory scrutiny of third-party processors and high-risk business customers.
  3. Major global ATM cash-out fraud attacks—including many U.S. ATMs—totaled $45 million.
  4. FTC issued a proposal to ban telemarketers from using remotely created checks and payment orders.
  5. Debit networks sought a compromise on an EMV interface—while there is little movement on the issuance of EMV cards.
  6. The newly designed $100 bill with additional security features was released.
  7. Several major data breaches occurred, and identity theft occurrences skyrocketed. (Perhaps you are experiencing repercussions from the recent Target breach?)
  8. Cyber Monday online sales were up 17 percent, with phones and tablets representing almost a third of the total.
  9. Virtual currencies received increased public, legislative, and regulatory awareness after the U.S. Department of Justice took action to close down virtual currency operators Liberty Reserve and Silk Road.
  10. U.S. District Court Judge Richard Leon threw out Regulation II debit card interchange fees and routing rules.

Happy Holidays everyone!

Payments and Privacy Roundup

A quick wrap-up of a few notable happenings on Payments and Privacy, this month so far (okay, one of them happened before November):

David Lott at the Atlanta Fed asks the larger question “Is Consumer Privacy Possible?

Coinbase’s Bitcoin Wallet gets pulled by Apple

Raj Date is brought on-board to Circle’s Board of Directors

A California federal court determines email addresses are PII

$3 million settlement awarded in class action data breach case, even to those who were not victims of identity theft.