New York State Department of Financial Services to push BitLicense
With the whole world moving towards Crypto, it only seems natural that there are rules implemented to make sure every party has a fair share of the cake and since USA is leading the race for crypto adoption at the moment as seen by the number of stores and ATM’s that they are accommodating for the public, someone definitely must have thought of some regulations over there. The answer is YES. New York State Department of Financial Services or NYSDFS issued a document called BitLicense on 8th August 2015 which contains a lengthy list of terms and conditions for any business looking to start its own crypto related operations. With diversified and innovative variations coming on for crypto, the BitLicense takes into account companies looking to operate with digital currencies, such as virtual currency control, administration, maintenance, storing, holding, issuing, exchange operations, related-software development, etc. Although retailers and individuals are not bound by this license, any one looking to create a business using crypto as a variable will need to follow it. When it first came out, it was met with different reactions in the business community. While it requires organizations to spend more time and money on their operations, it also provides guidelines ensuring that no company will need to prove their legitimacy in any way other than what is required if it comes under question. With the fact that half of the world still does not believe in crypto, it will come in handy for these startups.
Even though the BitLicense was the first of its kind in a lawless world, it never got the promotion that was associated with it. Benjamin Lawsky who was at that time, the head of the NYSDFS thought that it would be copied by other states but instead of being replicated was seen as something completely irrelevant. Being labelled as controversial, the BitLicense has yet to be copied. Meanwhile, other states have prepared their own version of rules and regulations for crypto businesses to follow, that are much easier because of the simplicity it takes for businesses to earn them. It goes without saying that only a few companies have ever secured the BitLicense because of all the requirements needed to fulfil it.
Businesses these days wanting to do something crypto related look towards laws published by other states such as Wyoming since licenses are easier to get but that has not dented the intentions of the NYSDFS who look to push BitLicense still. We can say for sure that the Crypto Revolution has just started and it will continue to expand with increasing adoption from the general public. As for the rules that are followed, they have to be set firmly to assure no illegal activities take place. For businesses to get one up on the liquidating world of Crypto, those who manage to gain that market while following the rules with definitely be the ones to succeed in the long run. So what do you think about this topic? Is the NYSDFS’s BitLicense really not that useful? Are you in favor of the BitLicense and is there any merit in supporting it or should rules be more relaxed? Please share your opinions in the comments below or let us know what you think about the BitLicense by tweeting us @tyslinofficial and we will be sure to publish your thoughts. Until next time!