Finalized in June of 2015, New York’s BitLicense regulation was heralded as a potential boon for an industry then struggling to shake its stigma as the unregulated ‘Wild West’ of the financial industry.
More than six months after the deadline for application filings, however, the New York State Department of Financial Services ( NYDFS ) has yet to emerge as a regular newsmaker in the industry. The NYDFS has only issued one BitLicense under the regulatory framework, which it provided to bitcoin services firm Circle in September 2015 .
According to figures provided to CoinDesk by the NYDFS, this means as many as 21 industry startups are now operating under the BitLicense’s safe harbor provision, but waiting for a formal confirmation that they are licensed bitcoin services providers in New York.
Even some of the industry’s more well-funded applicants, such as bitcoin exchange Coinbase and bitcoin storage specialist Xapo, indicated that their applications are still being processed.
In conversations with CoinDesk, applicants reported varying degrees of interaction with NYDFS officials, with some indicating they have not been provided much clarity as to the status of their application and others lauding the regulator for its efforts to help them ensure they have provided the requisite details for approval.
A spokesperson for the NYDFS indicated the department is potentially close to awarding new licenses, but that the relatively new nature of the technology is a factor in why more applications have yet to be approved.
NYDFS executive deputy of communications Richard Loconte told CoinDesk: "Applicants vary very, very widely, in terms of the type of applicants and information provided. We’re working with many applicants, rather than outright rejecting them, to provide information we need." Loconte contrasted this developing process with other licensed sectors, which have established pipelines and a steady stream of applicants. He suggested the high […]
