The founder of Buttonwood SF has started an online petition against a California legislative proposal for regulating digital currencies.
Penned by Assemblyman Matt Dababneh, chairman of the state’s Banking and Finance Committee, the proposal aims to regulate virtual currency businesses under the state's Money Transmission Act.
John Light, the founder of Buttonwood SF, told CoinDesk:
As previously reported by CoinDesk, potential applicants would need to pay a non-refundable $5,000 fee to register; provide certain identifying information; and keep a certain amount of funds in “investment-grade permissible investments”.
"It costs $5000 just to apply for the license, to say nothing of the actual cost of the license itself and related compliance costs, which would price out all but the richest entrepreneurs and businesses that seek its protection and effectively put all of the traders at my meetup out of business," Light explained.
At the time of press, the petition had acquired over 80 participants, some of whom shared their views on the legislative proposal.
Rob Mitchell, a signatory, commented:
Nozomi Hayase, another commenter, said: "I am signing because people have a right to innovate and build legitimate businesses without restrain."
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