California has prepared the legislative base for the blockchain and cryptocurrency

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California has prepared the legislative base for the blockchain and cryptocurrency

The draft law intended to change California regulations and create a legal basis for the introduction of cryptocurrency-related technologies, was approved by the legislature of the state of California. It provides for the change of the civil code of the state, government code, corporate code and the insurance code in order to legalize the use of protected bloccano data and smart contracts in domestic and international trade. The document contains important definitions of key terms from the sphere of the blockchain and cryptocurrency.

California a democratic politician, member of the state Assembly Ian Calderon was able to win approval of the bill relating to cryptocurrencies and the technologies of the distributed registry. The state legislature recently approved its bill 2658, containing the legal definition of blockchain technology and smart contract and reviewing other definitions, such as electronic record and electronic signature. All these terms and definitions necessary for the accounting system based on the technology of the distributed registry. One of the sponsors of the bill were democratic Senator Bob Herzberg.

Valid in the state “Uniform law on electronic transactions” clarifies that the record or signature is not denied legal effect or validity solely on the ground that they exist in electronic form. The bill includes a new concept of records or signatures based on blockchain technology. It also adds to the legal definition of a contract term smart contract. In addition, the law clarifies that a person who uses blockchain technology to protect information relating to internal or international trade, has the same rights of the owner and user as before began to use the blockchain.

The introduction of legal definitions of the key concepts of technologies of the distributed registry and cryptocurrency in General is a significant advantage of the law of Calderon. One of the important new sections contains the following statement:

The blockchain technology involves the technology of the distributed registry, using a distributed, decentralized, collective and mutual registry, which can be public or private, requiring permission or not, used in licenzirovanie cryptoamnesia or do not have a token.

In the California civil code are made a word about the fact that the data in the registry cryptographically protected immutable, you can pass an audit and “serve as a source free from censorship of the truth.”

Another new section defines the smart contract as “event-controlled program running on a distributed, decentralized, collaborative, and reproducible registry, which can hold assets and conduct their transfer”.

August 23 bill 2658 was approved in the state Senate, and on August 27 in the lower house, after which both houses repeatedly made in the document changes. To obtain the force of law, it needs to be signed by California Governor Jerry brown.

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