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Department of Financial Services is up to apply BitLicense fees on crypto-related businesses in New York
Cryptocurrency businesses that are at their initial stages face tough situations every now and then, which ultimately help them grow beyond. Something similar seems to be happening again where the cost of operating a crypto business in a region like New York might see a rise.
Recently, in a statement, it made clear that the state government is gearing up to make it mandatory for crypto companies to hold a BitLicense to pay as assessment fees, ensuring they comply and follow the regulations. This step is assumed to raise the cost of running any crypto business in New York.
The rule was recently included in the Financial Year 2023 budget of New York that was signed into law on 9th April by Governor Kathy Hochul while giving the Department of Financial Services of states an all-new authority of collecting some supervisory costs from licensed virtual assets and digital currencies businesses, as per the statement made by the DFS.
Superintendent at Department of Financial Services Adrienne Harris said about the fees that it would bring the businesses aligned with cryptocurrencies in line with those entities that are already paid by institutions such as insurance companies and banking and added that New York was the first one to start licensing and supervising these virtual currencies and digital assets companies. We continue to attract more such licensees and most such crypto startup funding regardless of their being in any state in the country.
The New York state was among the first ones in the US to require the crypto companies and related entities to be licensed when they introduced the system known as BitLicense. The system uses nothing but sort of application fees for permits that are currently $5000 and are subject to imprecise or unclear capital requirements that the DFS of New York determines.
The fees amount in the name of the annual assessment that DFS is going to charge from crypto firms is, however, not disclosed yet. Still, it would be the same as that charged by other regulated institutions in the finance space, including banks and insurance firms that can cost about tens of thousands of dollars per year.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
