While the New York Department of Financial Services finalized the Bitlicense this week, the California State Assembly approved a Bitcoin regulatory bill. This bill is now undergoing review by the California State Senate with a likelihood of getting passed.
Under the bill, the Department of Business Oversight (DBO) will be responsible for issuing a license to digital currency companies that want to operate in California. Similar to New York's Bitlicense, the proposed license for California would require digital currency businesses to pay a $5000 fee and be granted approval through an application process under the DBO.
California's proposed bill has a more positive reception than the NY Bitlicense. Coin Center pointed out that the California bill requires businesses to obtain a license if they maintain "full custody or control of virtual currency on behalf of others". This means that digital currency companies utilizing multi-sig technology to facilitate higher security for users may not be subject to the license, as these companies don't technically have full control of users' funds.
This bill would allow startups to innovate in the digital currency space without being subject to extensive regulation, indicating that the California assembly has a solid grasp of the complexity of the underlying Bitcoin technology.
If passed, this bill will make California a more Bitcoin-friendly place for business - hopefully other states will follow.