- New York State Department of Financial Services has brought in a wave of changes for cryptocurrency startups to be issued BitLicense.
- NYDFS chief Linda Lacewell asserts that industry has well received the changes and widely received positive feedback for BitLicense.
New York State Department of Financial Services has brought in a wave of changes for cryptocurrency startups issued BitLicense. It is a business license provided by the regulator to carry out virtual currency activities within the State of New York. Currently, 25 entities have the authority to carry the BitLicense stamp of approval. Founded in 2015, the license entails specific terms for the storage, trading, issuing, and exchange operations of digital currency.
Major Reforms Enacted for the Issuance of BitLicense
The regulator proposes that cryptocurrency exchanges should follow the former’s model framework for various coin listings. Additionally, new coins approved by the regulator should send a prior notice for listing on any of the States’ exchanges. Research and Innovation Division will oversee the functioning of cryptocurrencies in the State to protect the well-being of investors. The digital asset space has matured since 2015 with effective regulation and reforms all along the way.
Consequently, the coin listing process will be streamlined by the regulatory body come this fall. Applicants would be assisted with documentation to receive BitLicense and work in the State. Furthermore, a conditional license may be issued to entities who wish to partner with licensed firms within New York.
Self-certification of virtual currencies and access to campuses
The State University of New York will assist startups with 64 of its campuses in the State. There are also plans to allow licensed companies to self-certify digital currencies in a bid to provide efficient financial services.
Linda Lacewell asserts that industry experts have well received the changes and that work should kick off with a lot of enthusiasm. A coin’s compliance with state and local laws are crucial to its growth and acceptance among investors. Given that the compliance challenges are difficult to overcome at times. Still, New York is more than ready to accept cryptocurrency than it was over the past five years. Companies should carefully scrutinize the new opportunities for coin listing put forward by the regulatory body.