The New York State Department of Financial Services, which is the top financial regulator in New York, recently proposed a new set of licensing rules in the crypto sector. If the proposed laws were approved, it would make it easier for NY-based firms to interact with crypto and use digital currencies such as BTC.
Call for Input
The New York State Department of Financial Services wants members of the public to give their input on the proposed laws by August 10, 2020. These proposed changes to the law were the result of actual and perceived difficulties that companies face when trying to obtain the BitLicense permit. The BitLicense permit was launched in 2015 in New York. All companies operating within the crypto sector in the state have to obtain the license.
In the proposed framework, companies would be able to obtain a conditional license if they wish to operate in the virtual currency sector in the state. Through the license, they would be allowed to collaborate with fully licensed firms in the state.
Hurdles Presented by BitLicense
The BitLicense legal framework was introduced in the state in 2015. At the time, most regulators were quite skeptical of the crypto industry. However, the crypto sector has since grown in scope. Today, the crypto industry includes fintech firms that are trying to come up with innovative solutions for problems within the financial sector. New York is a leading center of finance globally. It no doubt wants to be a leader in the upcoming fintech sector. As a result, it recognizes the need to eliminate the barriers that companies that want to interact with cryptocurrencies face when operating within the state.
Since BitLicense was introduced. Only 25 firms have received licensed and charters. The regulator is also looking to make it easier for firms to issue and use new coins. In the announcement, they said that they would soon a list of coins that had been approved. Those that have received a BitLicense license can pick from them and self-certify without the need for additional approval.