Yesterday, the Department of Business Oversight issued this cautionary guidance for consumers regarding virtual currencies. However, amidst the warnings, the Department disclosed that “California has been working with virtual currency industry leaders and other state and federal regulators to evaluate businesses engaging in virtual currency transactions for possible licensing.”
A few weeks back, the Department also announced that it is seeking comments on proposed amendments to regulations under the Money Transmission Act. The Department is considering changes to definitions, exemptions, application requirements, and administrative standards and procedures relating to license applications, tangible shareholders’ equity, consumer disclosures, and eligible securities. The Department is asking for comments by April 26, 2014. The text of the proposed changes can be read here.