The Californian regulatory department liable for the regulation of monetary services will soon have more powers to strictly regulate the crypto-currency industry.
California Governor Gavin Newsom has signed a new bill into state law recently on Friday which will see the California Department of Business Oversight renamed as the Department of monetary Protection and Innovation.
The bill named [AB 1864], introduced by lead author Assemblywoman Monique Limón [D-Santa Barbara] earlier on 7th Jan., will enter into effect from 1st Jan. 2021.
The new amendments will equip the regulator with “new tools to shape the regulation of crypto assets,” the department’s commissioner, Manuel P. Alvarez, explained.
The new California Consumer Financial Protection Law will, among others, will offer the department with greater enforcement powers designed to guard Californians from “several inspired scams,” as per the official update.
This new move means the department will have a new regulatory agency to start cracking down on deceptive or abusive practices undertaken by unlicensed financial services or products.
But the new law will also look into the creation of an Office of Financial Technology Innovation designed to interact with new industries & user advocates to encourage user-friendly innovation as well as job creations within the state.
Additionally, a new Division of Consumer Financial Protection is going to be formed to watch markets, with a search arm that will continue with emerging financial products like crypto-currencies.
With the expansion of the department, 90 additional employees are going to be added to the govt payroll representing a 13% hike in staffing.
The legislation would permit his department to extend user protections & safety without hamstringing “honest and fair operations,” Alvarez added.