Feeds

Bitcoin was illegal in California? Whoops, governor fixes that 165-year-old money law

Crypto-currencies threatened by anti-counterfeit cash rules

Securing Web Applications Made Simple and Scalable

California Governor Jerry Brown has signed off on a law legitimizing Bitcoin and other cryptocurrencies for use in the state.

The governor rubber-stamped AB 129, enacting what legislators say is a much-needed overhaul of the state codes on currencies.

Under the new law, digital currencies and community currencies are protected from the state's counterfeiting laws – which ban the use of anything other than genuine US dollars.

According to lawmakers, the rules date back to California's founding as a US state in 1849 and its original constitution, which prohibited banks and non-government groups from dealing in their own currencies. The currency rules were later transferred to the state Corporations Code, where they remained on the books in California.

While the danger of the state economy being undermined by multiple currencies is no longer a worry, lawmakers feared the provisions were a dangerous technical threat to digital currencies, which could be seen in violation of a law carrying penalties of up to 15 years of imprisonment.

"According to the literal meaning of the statute anyone that issues or uses digital currency, community currency, or perhaps even reward points is in violation of the law," the bill's analysis reads.

"However, the Assembly Banking and Finance Committee is unaware of any prosecutions, arrest or enforcement actions relating to this statute."

With the bill now signed into law by Governor Brown, companies can safely trade in digital currencies without fear of being found in violation of a 165-year-old legal provision designed to rein in frontier banks.

Among the digital currencies listed in the bill are Bitcoin, Litecoin, Ripple and Dogecoin. The bill also covers locally used "community currency" vouchers which city governments issue for use with local businesses. ®

Application security programs and practises

More from The Register

next story
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.