New York wants to Examine BitLicense for Bitcoin Companies

New York wants to Examine BitLicense for Bitcoin Companies

New York has a new crypto research agency. The New York State Department of Financial Services (NYDFS) is working on a new department called Research and Innovation. The studies will focus on “business activities with virtual currencies”.

BitLicense good development?

Is more regulation good for cryptocurrency? That depends on who you ask, the fact remains that you need a BitLicense in New York to conduct business in cryptocurrencys. The BitLicense, and the process to get one, gets a lot of criticism. Some companies have had to wait three years to get a BitLicense.

Erik Voorhees was not so happy with BitLicense at the time:

BitLicense is officially law in NY today. Shed a tear for freedom, capitalism, and innovation. Then, comply citizen. #bitcoin #USSA

– Erik Voorhees (@ErikVoorhees) June 24, 2015

That must be investigated

The NYDFS is therefore establishing a completely new division that will focus on cryptocurrency, with special attention to BitLicenses. The division will also be responsible for “promoting market innovation.”

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New York regulators want to expand the legal situation in the state, but the current process must first be examined. This allows the BitLicense to play a leading role throughout the country over time.

For companies working in the blockchain and cryptocurrency sector in the United States, but also for foreign companies that want to do business in the US, this should in theory lead to progress. The complaints about obtaining a BitLicense are not tender.

What is a BitLicense anyway?

From June 2015, crypto companies need a BitLicense. BitLicense is also known as a Virtual Currency Business Activity License, and has three goals:

  1. lay down rules to prevent money laundering
  2. to protect consumers
  3. establish rules regarding cyber security.

The BitLicense applies to companies that send, hold, buy, sell, manage or spend cryptocurrencys. But again a company does not need BitLicense to receive cryptocurrency as payment.

Many companies already have a BitLicense

So far, various companies have already received a BitLicense. Think of Gemini, Ripple, Coinbase, Square, BitPay, Coinsource and Robinhood. But it is not easy to get a BitLicense. Many of these companies had to wait a while between the moment they requested their BitLicense and the moment they received it.

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In May 2018, Fortune reported that Genesis Global Trading (the fifth BitLicense beneficiary) had to wait nearly three years for approval, while Japan-based BitFlyer had to wait more than a year for a New York license.

Jesse Powell van Kraken has given up hope:

NY is that abusive, controlling you broke up with 3 years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and are better off without them. #getoverit

– Jesse Powell (@jespow) September 19, 2018

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