NYDFS Releases Revised BitLicense Proposal

The New York State Department of Financial Services (NYDFS) has finally released a revision to the original BitLicense proposed cryptocurrency regulations.

Photo: Andrew Mace/Flickr

Photo: Andrew Mace/Flickr

The New York State Department of Financial Services (NYDFS) has finally released a revision to the original BitLicense proposed cryptocurrency regulations. The complete document can be found here.

Benjamin M. Lawsky is New York State’s Superintendent of Financial Services.  He was unanimously confirmed for the position by the New York State Senate on May 24, 2011.

As Superintendent, Mr. Lawsky is the supervisor of all New York State-chartered banks, the majority of United States-based branches and agencies of foreign banking institutions, and all insurance companies in New York.

He also regulates all of New York State’s mortgage brokers, mortgage bankers, check cashers, money transmitters, budget planners, and similar providers of financial services.  Entities supervised by the Department number more than 3,800, with assets of more than $7 trillion.  The Department was created in October 2011 through the merger of the former New York State Banking and Insurance Departments.

“Those changes are primarily focused on providing additional flexibility for virtual currency startups to innovate – while at the same time maintaining our commitment to protecting consumers and rooting out illicit activity,” Lawsky told the Bipartisan Policy Center nearly two months ago.

“The rules also generally mirror the types of requirements that banks; financial institutions, and money transmitters have to live by – with some alterations owing to the unique nature of virtual currencies.”

Coin Center, the nonprofit crytocurrency advocacy, has published a redline version of the new document, highlighting the differences between the original proposal and the revision.

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