NYDFS Faces Lawsuit To Abolish BitLicense as Case Moves To Highest Court of the State
A 2015 case against the New York State Department of Financial Services (NYDFS) has recently moved to the highest court of the state. The lawsuit, which was filed by the entrepreneur Theo Chino, wants to abolish the BitLicense.
The BitLicense, in case you are not familiar with the term, is one of the hardest licenses to get in the U. S. As gives the company access to the Wall Street market, this license to offer digital products on the state is notoriously hard to get.
What Chino and his lawyers claim is that the NYDFS has, without backing from the legislation, created a rule to stifle the entrance of crypto-based businesses in New York. The regulation is accused of being burdensome and complex, which makes it very hard to follow. It also costs around $50,000 to $100,000 USD to implement, which is a big cost.
The case was started just a few months after the BitLicense came into effect. The complaint was that Chino had to shut down his business because of the new regulation. He created a business in which people could use his company Chino Ltd as a middleman for receiving Bitcoin.
He even applied for a license some months later, but then realized that it was a very burdensome procedure and decided to move forward with the lawsuit. Now, the case is going to the last instance, the New York Court of Appeals.