New York vs Ohio Crypto Regulatory Frameworks, From Conservative to Progressive

For years, countries around the world have been struggling to deliver a proper regulatory framework for blockchain technology and digital currencies. The lack of centralized authority that would take command and responsibility is one of the main reasons why this has been so difficult for many, and the situation is especially confusing within the US.

The US is somewhat unique in terms of structure, as each state has its own laws and regulation. Because of that, the attitude towards these new technologies can go from entirely conservative, such as in New York, to very progressive, like in Ohio, for example.

Over a short span, these two states became representatives of two major regulatory standpoints. New York has always been strict, suspicious, and ready to bring forth blockchain and crypto-related controversies. Ohio, on the other hand, has been more encouraging of this technology, which has allowed greater acceptance of it.

New York

New York is seen as a conservative location for several reasons. First and foremost, it is where Wall Street is located, which is the entire world's financial capital. Now, considering that cryptocurrencies — the largest blockchain application at the moment — aim to eliminate the need for financial institutions, and third parties in funds managing in general — it is not surprising that the Wall Street doesn't support this tech.

JPMorgan's chairman and CEO, Jamie Dimon, stated on several occasions that Bitcoin is a fraud, while the Bank of America itself openly views cryptocurrencies as a threat to their business.

Naturally, regulators understood this, and soon enough, New York implemented a regulatory framework named BitLicense. BitLicense has a goal of providing consumer protection for crypto and blockchain technology. ShapeShift exchange's CEO, Erik Voorhees, even criticized Jamie Dimon's statement regarding Bitcoin on Twitter.

In the end, BitLicense was responsible in crypto exchanges leaving New York in search of friendlier ecosystems. This also includes a popular exchange named Kraken, which heavily criticized the framework in a blog post from 2015.

What was so bad about BitLicense? The main reason for exchanges disapproval is the attempt to use the license in order to bring “consumer protection”, which would actually only enforce KYC rules. In other words, it would mean that customers' personal data would have to be collected, which goes against the entire point of crypto and blockchain.

As a result, BitLicense was only granted to twelve companies so far, which means that any new blockchain-based project would have a very hard time getting it at this point. Considering the amount of effort that it would take to obtain the license in the first place, many have decided that it is simply not worth it and that relocating is a much better decision.

Ohio

Despite the fact that Cleveland, the second largest city in Ohio, is only two hours away from New York's border, the two couldn't be more different when it comes to their stance towards crypto.

For example, Ohio was the first state to accept tax payments in Bitcoin. While Arizona managed to achieve this as well, and Illinois and Georgia are attempting to do the same right now, Ohio is still the first one to make such a bold move.

Cleveland is an important location for another reason, and that is its Blockland initiative, that has a goal of establishing, as well as leading its own blockchain ecosystem. The ecosystem is to be supported by individuals and organizations alike. Due to efforts of Matt Dolan, the State Senator, Ohio even legally recognized blockchain-based data. There are even plans to use blockchain for property deed transfers.

Clearly, blockchain is being not only considered, but actively used in Ohio, which has sparked a positive stance towards the new technology in other states as well. However, that doesn't mean that New York is without support for its own way of thinking, and many others believe that strict regulations are necessary for controlling the blockchain industry.

The two states are polar opposites when it comes to the ways they treat blockchain, and they presented the rest of the US with a choice. In the meantime, companies continue to prefer Ohio and other states that support Ohio's stance, but this division only makes it more difficult for the US to accept crypto and blockchain as a whole.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,441FansLike
2,795FollowersFollow
4,191FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex & Tether Class Lawsuit Revised; Adding Bittrex and Poloniex to Alleged BTC Price Manipulation

Revised lawsuit on Bitfinex’s alleged price manipulation of the market using Tether (USDT) during the 2017 bull run to $19,800 has added two...

‘Masked Hero' Calling to ‘Buy Bitcoin' Amidst the Peaceful Protests and Riots in the US

Bitcoin is taking an active part in the riots across America. People are protesting since last week over the death of George Floyd,...

DiversiFi, Formerly Ethfinex, Launches Its DEX 2.0 With Starkware; Processing 9,000 + TPS

Bitfinex sister decentralized exchange, DEX in short, DiversiFi, which relabeled from Ethfinex in August last year, announced a relaunch of their platform, now...

Bitcoin Difficulty Sees 2nd Largest Drop of 2020 to 9.29%; Hashrate & Price Continue to Dance

Today, the bitcoin network difficulty took a drop of 9.29% to 13.73 trillion, as per Coinwarz. This is the fourth downwards adjustment this year after...

Japan’s Top Banks Join Crypto Exchange-Led ‘Study Group' to Discuss Digital Payment System

Three Japanese banking industry heavyweights are joining arms in a study group to focus on digital payment settlement networks in the country. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today