A new BitLicense-like Bitcoin regulation could soon be approved in 5 different US states. In general, the cryptocurrency space is not regulated and there were different attempts to start to control the market.
There are five US states that would like to introduce a regulation similar to the one implemented in New York, which is called BitLicense and that is very restrictive for companies and firms that try to enter the market.
New Regulations Being Planned
BitLicense has been one of the most controversial forms of regulation in the last years. Experts and analysts believe that this regulation is constraining growth in the space and the crypto industry as a whole.
At the moment, New York-based users can have access to a few cryptocurrency exchanges in the market, when in other countries or jurisdictions the number of platforms operating is larger.
The information regarding the approval of five similar BitLicense regulations in different US States was released by Nulltx a few days ago. The states that could have a similar regulation are Nevada, California, Oklahoma, Rhode Island and Hawaii. In Nevada, for example, there was nobody opposed to this “BitLicense” concept. That means that if the regulation is implemented in the state, there is no right for complaining.
California seems to be one of the largest participants in the cryptocurrency market. And indeed, altcoins and digital assets have been operating in the state without any rules or guidelines for a long period of time.
It is not clear how this license will be affecting the cryptocurrency market in these states. Indeed, several companies could stop offering services for clients in these jurisdictions, which will be very negative for the whole market. Nonetheless, it is better to have a regulation rather than banning digital assets in the way China did.
As the rules and regulations have not yet been implemented, it might be possible to see a good implementation scheme that will reduce the negative effects on the market. Thus, it is not possible to draw any real conclusion on the matter.
Around the world, there are other countries that are trying to implement crypto-friendly regulations in order to attract a larger number of firms and companies. Some of these countries are Malta or Switzerland.
In the United States, Wyoming has passed a bill on its Senate that defines cryptocurrency as property and establishes rules that allow banks to provide crypto-custodial services.