BitLicense are still not settled, now Boost VC CEO Adam Draper has issues with them. He has now launched a petition seeking a number of changes to New York’s proposed BitLicense framework as according to him these are sandbox of innovation in the financial markets. Nonetheless, the petition from him calls for New York regulators to limit the amount of information they gather on virtual currency startups to what is mandated by federal standards.
Draper believes that the BitLicense would make it difficult for accelerators like Boost and other similar organizations that provide early funding to potential innovators, to support nascent startups in the digital currency space. According to him the BitLicense frame work will definitely impair Bitcoin startups from starting, which would impact my business negatively.
Talking to media professionals he explained that his business is to drive innovation in technology, and over-regulation stops technology. He adds that it will not hurt the companies who have been well funded or large funds; however, according to him it will hurt the early staged startups and that is a major issue he wants to get settled before approval.
Draper is of the view that the BitLicense avoid using duplicative language already enshrined in federal law; and that regulators give their approval for a “sandbox of innovation in the financial markets.” Nonetheless, in a video accompanying the petition, Draper stated that the changes are needed to reduce startup costs for digital currency businesses to great extent.
Concern over Bitcoin Regulation in Bitcoin Companies in New York
Additionally, sharing his views with the media he estimated an initial cost of $2m for a company seeking a BitLicense, with $1m per year in additional costs. Explaining his views Draper told media that the expenses include the costs of hiring compliance officers, meeting reporting standards, collecting necessary information, AML/KYC expenditures and associated legal costs.
BitLicense have been a major bone of contention among Bitcoin companies in New York ever since Ben Lawsky came up with Bitcoin regulation. Even Draper says that the revised BitLicense marks an improvement over the initial draft but still leaves digital currency startups at a significant cost disadvantage.
Not just Draper but several other stakeholders have shown their concern over BitLicense; for instance, Union Square Ventures principal Fred Wilson and others who have commented on the reworked proposal have similar opinions. .
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
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