NY Department of Financial Services Revises BitLicense Proposal
Commentary by Steven Lofchie
The New York Department of Financial Services ("NY DFS") released the revised proposal for its first-ever license for virtual currency operators, which includes a conditional version of a license for startups, as well as state-level anti-money laundering requirements and enhanced consumer protections.
The revised proposal states, among other things, that the NY DFS has the option to renew a conditional BitLicense if a firm continues to meet the operating criteria, and that the firm may be subject to heightened review by New York examiners. Additionally, the revised proposal requires that firms report suspicious transactions to the state rather than the Financial Crimes Enforcement Network.
The revised proposal also eliminates the previous requirement for any firm operating with a BitLicense to obtain the addresses and transaction data for all parties to a virtual currency transaction.
Related news: Mercatus Center Technology Policy Program Submits Comments to New York DFS on Proposed Virtual Currency Framework (August 14, 2014); NY DFS Releases Proposed Licensing and Regulatory Framework for Virtual Currency Firms (with Brito Comment) (July 18, 2014).
Commentary
For those who are interested in learning more about bitcoins and blockchains, The Age of Cryptocurrency, by Paul Vigna and Michael J. Casey, is a good read.