Since the New York State Department of Financial Services (NYDFS) launched its new means of regulating companies operating in the cryptocurrency industry, BitLicense , eight months ago in June 2015, the regulatory process has only approved one application. Launched to foster acceptance by administrative bodies
When it was announced that the NYDFS was launching its BitLicense programme in New York, the news was met with positive remarks by leading industry professionals. Many take the view that regulation, although it may limit the cryptocurrency industry temporarily, is in reality hugely beneficial as it means there is growing acceptance by administrative bodies, and therefore hopefully, the general public will feel more comfortable using the new technology.
A spokesperson for the NYDFS tells Fortune : “There are always going to be those who argue for little-to-no regulation, but we think that ultimately the BitLicense is going to a be a positive for the long-term health of this industry. If digital currency is going to gain wider adoption, strong consumer protections and oversight (to help ensure that customer money doesn’t fall into a black hole) will be critical.” A number of companies, such as Bitfinex , BitQuick , BTCGuild, EobotCT r: 5 , Genesis Mining , GoCoin , Kraken , LocalBitcoins , PaxfulCT r: 43 , and Poloniex, made a decision to leave New York in order not to have to deal with BitLicense. “This particular piece of legislation is unnecessary and is an obstacle to free market innovation,” wrote Genesis Mining on its blog. KrakenCT r: 11 , an exchange headquartered in San Francisco , said that the license, “comes at a price that exceeds the market opportunity of servicing New York residents. Therefore, we have no option but to withdraw our service from the state.” Application difficulties
Despite the programme being in […]
