BitLicense Becomes Subject of New York Financial Regulators Scrutiny Over Current Regime

The New York Department of Financial Services (NYDFS) has finally decided to review its most controversial decision in recent days. According to the head of the agency, Linda Lacewell, the agency is set to look into the infamous BitLicense and maybe consider some changes.

BitLicense is the name of the dreaded license that all digital asset operators need if they want to offer their services to residents in the state of New York, a necessity even if the companies are not based locally.

The license is famous for being the toughest one to get in the country, which added to its unpopularity. Several companies such as Bittrex and Kraken were basically driven out of the state because of the license and issues related to it.

According to Lacewell, now is the perfect time to look at the system and to determine how to proceed, and look to see if any adjustments are needed at the moment. She did warn people not to be “too excited”, though, as there is a big chance that nothing will change.

Some of the questions that will determine what will be done include understanding how the industry has grown lately and whether it has matured or not. According to her, the current license is “working well”, but it is important to always hear all sides when making decisions. No information of when the review would be complete was given during her speech.

At the moment, only 22 companies were able to grab the BitLicense. The NYDFS is receiving applications for the license right now, but the majority of the companies that apply still fail the tests.