The New York Department of Financial Services (NYDFS) has recently proposed new guidance that would change the way in which the institution approves the listing of new cryptocurrencies. This would have a direct impact on the controversial BitLicense that has created difficulties for many crypto-related companies that wanted to operate in New York.
NYDFS Could Modify The Controversial BitLicense
According to a recent press release signed by the Superintendent of the New York State Department of Financial Services, Linda Lacewell, the goal is to update the guidance on crypto adoption. There are two main proposals that would make it clearer and easier to understand which cryptocurrencies could be permitted.
The first proposal is related to the creation of a list of digital assets that would be allowed by the NYDFS. At the same time, the second proposal would be a new framework for listing cryptocurrencies.
Some of the things that must be taken into consideration include the risk related to the cryptocurrency, its governance model and other characteristics. That means that the agency is expected to be conducting a complete assessment of different coins in the market, many of which have been released through Initial Coin Offerings (ICOs) in the last few years.
The financial regulatory agency of New York is currently accepting comments on the new public framework, which will be received until January 27, 2020.
Although this generates hope among the crypto community, this is just one of the first steps required to change the way in which the BitLicense works. Thus, the real effects of these changes could be seen in mid next year if everything goes as planned.
It is worth mentioning that companies that have already received the BitLicense and are operating in New York do not need to apply again to be able to remain in the market.
New York remains one of the most difficult markets for crypto companies to operate in due to the regulatory environment. These modifications could make it easier for smaller companies to compete in the market.