California introduces new legislation aimed at tightening crypto regulation once again.
It’s called Assembly 39, and it comes after Governor Newsom attempted to regulate cryptocurrencies like Bitcoin in the state of California back in February 2022.
Newsom vetoed that bill back then because he thought it was too restrictive.
New legislation, AB 39, would go into effect starting July 1, 2025.
That means that anyone who wants to start a business in the crypto space in California must be licensed, have a pending application for a license, or be exempt from any licensing requirements altogether.
The California Department of Financial Protection and Innovation can enforce the legislation.
However, there are still some issues with the bill, such as the vague provisions that allow the DFPI to take enforcement action against people just by saying they’re about to engage in digital financial activities without specifying precisely what those activities are.
This ambiguity could pose a risk for new companies planning to operate in California.
Overall, though, the bill has a lot