Matt Dababneh, Assemblyman for California’s 45th District, has introduced for the third time a bill that would handcuff Bitcoin businesses, no matter size nor function.
In essence, any business utilizing Bitcoin for anything other than sale or purchase would need to pay a 5,000 dollar registration fee with an additional 2,500 dollar yearly fee. For this fee, it is unclear what service or benefit the businesses would be getting other than to have a piece of paper to wave when the authorities come to visit.
In principle, Bitcoin Warrior is not opposed to government regulations when they are enacted and enforced for the good of the community, defined as the largest number of people, and which do the least damage. Unfortunately, regulations have gotten a bad rap as they are too often merely a show of activity on the part of politicians – heedless of the collateral damage they do (see the plethora of laws enacting security theater after 9/11) and protectionist rackets by entrenched industries (see the infamous hair stylist licenses).
If this law was truly in the interest of the people, it would not 1) be framed as an extortionate power grab, and 2) would have been proceeded by studies of actual use cases and problems encountered by those using Bitcoin. Each provision could then be supported by specifics indicating its need.
In recent years, the Bitcoin Foundation has fallen out of favor, and largely out of awareness, of the majority of the Bitcoin Community. It, and its director Bruce Fenton, have been stepping up to the plate on issues like this and protecting Bitcoin from overzealous politicians. Please send your thanks and your support to both the Foundation and the EFF which have done so much to kill the two previous incarnations of this bill.