“Following two open comment periods, the BitLicense appears to be just a few weeks away from being finalized,” the Californian company reminded its counterparts. “The latest draft, however, retains several key flaws that have not yet been addressed and which, if passed in their current form, will stifle innovation across the space and ‘threaten both businesses and consumers in the state of New York.”
Duplicative Bitcoin Policies and License
Keeping the new Bitcoin startups in mind, Coinbase straightforwardly bashed NYDFS for lobbying laws that put unjustifiable barriers in front of the companies. The firm simply explained that how all the Bitcoin wallet and trading companies are already complied to obtain Money-Transmitter-License (MTL). Adding an extra, yet similar regulatory burden like BitLicense will simply effect their scope to “scale, compete and move the industry forward.” It further demanded to annihilate state-level AML reporting and record keeping requirements, a law which has been already imposed at the Federal Level.
Regulating New Features
Somewhere between the tiring pages of BitLicense final draft is a law that has restricted Bitcoin companies from launching new features/updates without NYDFS approval. Coinbase, on the other hand, tried reasoning with the officials, saying that such restrictions seems “untenable”.
“Companies cannot wait an indeterminate period of time for regulatory bodies to approve their latest product,” it added while saying that they could simply alert NYDFS through a notification of their new upgrade. An explicit permission sounds a way too illogical.
An Unofficial Commenting Period
Even though the comment periods are over, Coinbase has urged the Bitcoin community to voice their concerns to the NYDFS Superintendent Benjamin Lawsky (@BenLawsky). While we are unsure if such unofficial requests would be addressed properly, the amendments could reach floor upon the final launch of BitLicense, the regulation that haunts.