The New York Department of Financial Services has awarded 20 BitLicense

The New York Department of Financial Services (NYDFS) is reviewing its controversial virtual currency license.

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In a speech at Georgetown University during DC Fintech Week, Linda Lacewell, NYDFS superintendent, said the agency is re-evaluating BitLicense. This provides that any companies that carry out cryptocurrency transactions on behalf of New York residents will be authorized to operate in the state – even if the companies are located elsewhere.

The license is not easy to obtain

The license is considered the most restrictive regulation in the US and has a very negative reputation. Start-ups and blockchain companies are complaining about the massive amounts of documents and the length of approval.

The Kraken Exchange, for example, chose to leave New York rather than comply. The Bittrex exchange was forced to leave New York in June this year after failing to obtain BitLicense.

Lacewell said NYDFS will compare the cryptocurrency industry in 2015 with the current one. The BitLicense provisions were first implemented in 2015, and the authorities will evaluate how the market has evolved since then.

“How did the industry grow? Has it matured in any way? This is a good time for a reassessment, “

said Lacewell.

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20 companies have obtained BitLicense

She also argued that the current regulatory regime “works well” and the existing regulation will be retained during this review. However, NYDFS wants to hear from industry participants to see what improvements it can implement.

Since its introduction, BitLicense has been obtained by over 20 companies. The New York Department of Financial Services only granted six licenses between June 2015 and June 2018, but has since added another 16.