The State of California is the home for a lot of start-ups in the United States. True to its start-up spirit, the state had issued a statement declaring its intention of not introducing any regulations on Bitcoin and other digital currencies under the existing rules. The California Department of Business Oversight’s statement had got the Bitcoin community cheering, but not for long. The department soon retracted its earlier statement saying it was released prematurely and the agency is still exploring all its options.
The earlier statement was unusually logical and mature for any government and it would have benefitted everyone (When was the last time we heard of any government making things easy for people?). The Bitcoin industry currently enjoys a positive outlook. A lot of entrepreneurs and investors have high hopes on the development of Bitcoin technology based products and services. It would be appropriate for the authorities to observe the progress of Bitcoin industry and identify any issues of concern before introducing any regulations.
At the moment, Bitcoin technology is relatively new and there are changes happening in a rapid pace. It is similar to an atom in excited state where the electrons are moving around to reach a stable, lowest energy state. Once the industry attains stability, it will be easier to frame a comprehensive regulatory framework that addresses any concerns regarding the technology while protecting the interests of everyone involved.
California has a lot of Bitcoin start-ups operating from its jurisdiction. The state hasn’t taken any concrete steps towards introducing Bitcoin regulations so far. These recent statements by the Department of Business Oversight merely shows that the authorities are contemplating about Bitcoin regulations and it may or may not be introduced anytime soon. New York on the other hand has introduced the controversial BitLicense and itBit, a Bitcoin exchange became the first Bitcoin based business to receive the BitLicense. The BitLicense is expected to undergo few changes in the coming days as Benjamin Lawsky, the superintendent of NYSDFS has announced his intentions of addressing the concerns regarding BitLicense while protecting the consumers and preserving the freedom for developers.