California approved a bill for cryptocurrency, blockchain and smart contracts.

The draft law, designed to change California regulations and create legal grounds for the implementation of cryptocurrency-related technologies, was approved by the California legislature.

It provides for a change in the state civil code, government code, corporate code and insurance code to legalize the use of blockchain-protected data and smart contracts in domestic and international trade. The document contains important definitions of basic concepts from the scope of blockchain and cryptocurrency.

Californian Democrat politician and state member Ian Calderon have managed to get approval for a bill relating to cryptocurrency and distributed registry technology.

The state legislature recently approved its bill 2658, containing legal definitions of the blockchain and smart contract technology and revising other definitions, such as electronic recording and electronic signature. All these terms and definitions are necessary for the operation of the accounting system based on distributed registry technology. One of the sponsors of the bill was Democratic Senator Bob Herzberg.

The Uniform Law on Electronic Transactions Act, which states that the record or signature is not without legal effect or effect only on the basis that they exist in electronic form. The bill includes a new notion of a record or signature based on blockchain technology. The term Smart Contracts was also used in it.

In addition, the law specifies that a person using blockchain technology to protect information relating to domestic or international trade has the same rights of owner and user as before he began to use the blockchain.

The introduction of legal definitions of key concepts of distributed registry technology and cryptocurrency, in general, is significant merit of the Calderon law.

One of the important new sections contains the following statement:

“Blockchain technology implies distributed registry technology using a distributed, decentralized, collective and reciprocal registry, which can be public or private, requiring permission or not, used in tokenized crypto-economics or not having a token.”

On August 23, 2018, the bill was approved in the State Senate, and on August 27 in the lower house, after which both chambers amended the document more than once. To obtain the force of law, it must be signed by California Governor Jerry Brown.

The California Civil Code contains the words that the data in the registry are cryptographically protected, immutable, can be audited and “serve as a source of truth free from censorship.”

At Feb 2019, another new section defines a smart contract as an “event-driven program that runs on a distributed, decentralized, shared, and replicable registry in which you can store assets and transfer them”.

Assembly Majority Leader Ian Calderon has introduced Assembly Bill 1489. This bill will regulate cryptocurrency activities related to business and make their economy better.

According to the legislation.

Bill 1489 stated as by law:

“This bill would enact the Uniform Regulation of Virtual Currency Businesses Act. The bill would prohibit a person from engaging in virtual currency business activity, or holding itself out as such unless licensed or registered with the Department of Business Oversight, subject to a variety of exemptions.”

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