New York Regulator Proposes Cryptocurrency Overhaul To Accelerate Adoption Of Digital Assets

New York Regulator Proposes Cryptocurrency Overhaul To Accelerate Adoption Of Digital Assets


The New York Department of Financial Services (NYDFS), which regulates the state's financial infrastructure, is proposing a plan that would ease the city's notoriously tight restrictions on cryptocurrency-related businesses.

Under the agency's current regulations, crypto companies operating in New York must have a BitLicense license to receive, store, transmit or send digital assets. The problem is that obtaining the license can take years and to date, only 25 companies have obtained a BitLicense license since New York introduced the policy in 2015.

To ease these licensing barriers and promote growth in the industry, the NYDFS is now considering whether to grant "conditional" licenses to companies that allow their crypto to work with companies that already have the actual BitLicense.

The regulator accepts public comments on the proposed conditional license framework until August 10.

"The framework can be used by a variety of entities, such as startups, growing companies, New York-based companies that are not yet active in virtual currency, and companies established in virtual currency now operating outside of New York…

DFS expects that an entity seeking a conditional license will eventually endeavor to seek and obtain a full BitLicence license. "

The regulator also introduces a new directive that allows crypto companies to "self-certify" the list of new coins, provided they have the green light from the NYDFS to self-certify, and that they move away from the coins and privacy tokens designed for use in the gaming industry.

The New York Department of Financial Services (NYDFS), which regulates the state's financial infrastructure, is proposing a plan that would ease the city's notoriously tight restrictions on cryptocurrency-related businesses.

Under the agency's current regulations, crypto companies operating in New York must have a BitLicense license to receive, store, transmit or send digital assets. The problem is that obtaining the license can take years and to date, only 25 companies have obtained a BitLicense license since New York introduced the policy in 2015.

To ease these licensing barriers and promote growth in the industry, the NYDFS is now considering whether to grant "conditional" licenses to companies that allow their crypto to work with companies that already have the actual BitLicense.

The regulator accepts public comments on the proposed conditional license framework until August 10.

"The framework can be used by a variety of entities, such as startups, growing companies, New York-based companies that are not yet active in virtual currency, and companies established in virtual currency now operating outside of New York…

DFS expects that an entity seeking a conditional license will eventually endeavor to seek and obtain a full BitLicence license. "

The regulator also introduces a new directive that allows crypto companies to "self-certify" the list of new coins, provided they have the green light from the NYDFS to self-certify, and that they move away from the coins and privacy tokens designed for use in the gaming industry.

The regulator also introduces a new directive that allows crypto companies to "self-certify" the list of new coins, provided they have the green light from the NYDFS to self-certify, and that they move away from the coins and privacy tokens designed for use in the gaming industry.

The New York Department of Financial Services (NYDFS), which regulates the state's financial infrastructure, is proposing a plan that would ease the city's notoriously tight restrictions on cryptocurrency-related businesses.

Under the agency's current regulations, crypto companies operating in New York must have a BitLicense license to receive, store, transmit or send digital assets. The problem is that obtaining the license can take years and to date, only 25 companies have obtained a BitLicense license since New York introduced the policy in 2015.

To ease these licensing barriers and promote growth in the industry, the NYDFS is now considering whether to grant "conditional" licenses to companies that allow their crypto to work with companies that already have the actual BitLicense.

The regulator accepts public comments on the proposed conditional license framework until August 10.

"The framework can be used by a variety of entities, such as startups, growing companies, New York-based companies that are not yet active in virtual currency, and companies established in virtual currency now operating outside of New York…

DFS expects that an entity seeking a conditional license will eventually endeavor to seek and obtain a full BitLicence license. "

The regulator also introduces a new directive that allows crypto companies to "self-certify" the list of new coins, provided they have the green light from the NYDFS to self-certify, and that they move away from the coins and privacy tokens designed for use in the gaming industry.

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