Business is at the heart of New York City and it is a place where startups have burgeoning opportunities to do well and to make a name for themselves. However, despite being the capital of growth, innovation, and flourishing ideas, there are some activities that are currently taking place that may derail a specific industry – the cryptocurrency one.
The cryptocurrency regulation is taking place in light of new evidence showing that the industry may be better off with more regulation due to its potential use as a tool for criminal activity, securities fraud, and more. One of the most recent laws that functions as a regulatory regimes on cryptocurrency startups is BitLicense.
BitLicense refers to a virtual currency license implemented by the New York State Department Financial Services (NYSDFS). The regulations are a limited tool upon the activities that take place in New York concerning cryptocurrencies. New and recent developments have caused many to speculate that the New York State legislator may be thinking of getting rid of BitLicense and in turn, the regulations that are holding the industry back.
The key words allegedly stated by New York lawmaker Ron Kim are “This will replace BitLicense.” Based on the wordage, it isn’t that the state legislator is getting rid of the regulations, but rather, it is replacing them. The issue is, the regulations could be good or bad for cryptocurrency based on the types of regulations that are contained in the new bill.
From what is known concerning the bill, it seems that it would eliminate some of the controversial components of the law, while still maintaining the elements that are designed to protect consumers against fraud and other problems. As Kim stated, “It would get rid of the fee and the actual license itself,” but “embrace the startup companies that are trying to launch exchanges.”
Such changes are likely to be widely praised by the startup community. Working within the scheme of BitLicense has not been easy, but now, it seems that the impediments are being eliminated to make progress easier for startups.
Further, the new bill could overcome one of the worst challenges related to BitLicense – an inability to actually acquire the license itself. State records show that only a few companies have managed to acquire a BitLicense in 2015.
Those who are excited about this new bill should realize that it has not yet become a law. It is simply a bill and it must pass the state legislature before it has any effect. At this point, it the reception in the legislator regarding the bill is not exactly clear – it would need to develop positive feedback by technologists and lawmakers alike before any headway is made.
Those who are interested in keeping up to date may want to regularly check back to see if the bill passes and if it does, there will seem to be all the more reason for technologists in New York City to be excited.