According to data obtained from the source – the New York Department of Financial Services itself – the financial regulator has only responded to 9 of 36 BitLicense applications submitted since 2015. Five have been denied, four have been approved, the rest are still going through the process. Fortune writer Robert Hackett became interested in … Continued
Today, November 14, 2018, the New York State Department of Financial Services (DFS) announced that it has approved the application of NYDIG Execution LLC, a subsidiary of NYDIG LLC, for a virtual currency license and a money transmission license. The approval of this so-called “BitLicense” or “Virtual Currency License” application is the 14th of its kind and is required under New York State law in order for a company to engage in “any Virtual Currency Business Activity.”
Under the BitLicense, NYDIG Execution LLC is allowed to offer secure custody and trade execution services, as well as to operate as a custodian for virtual currencies, including bitcoin, bitcoin cash, ether, ripple and litecoin.
Bitcoin ATM Operator Coinsource has been granted a BitLicense by the New York Department of Financial Services (NYDFS).
Based in Texas, Coinsource deploys Bitcoin ATMs to key population centers across the world with over 200 machines installed in the U.S. alone.
CEO of Coinsource Sheffield Clark called the announcement a “landmark day for Coinsource” and an “important win for New Yorkers” in a statement.
In an interview with Bitcoin Magazine, Clark noted that he sees the “license as validation of not only our tireless efforts to offer Americans easy, convenient access to an evolving global financial system, but also progress in the acceptance and legitimization of bitcoin as a valuable currency.”
Coinsource, the world’s largest Bitcoin ATM company, has become the 12th organization to receive a “BitLicense” from the New York State Department of Financial Services (DFS). DFS Grants Virtual Currency License to Coinsource, Inc. https://t.co/MCYZtgolfQ — NYDFS (@NYDFS) November 1, 2018 According to the announcement, Coinsource is the first DFS virtual currency licensee to operate Bitcoin […]
The world’s largest bitcoin ATM company has finally received official approval to operate in New York. They had previously been operating in New York almost since the company’s inception via a provisional license. Last year, they received coverage in the New Yorker and have frequently been in the news with word of new ATMs across
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On September 23, 2018, the Bitcoin Foundation sent a letter to the French Parliament asking that they reject a new crypto asset amendment being proposed in the PACTE Bill, which deals with the growth and transformation of France’s businesses and the country’s employee savings.
The amendment was suggested by members of France’s new social liberal party La Republique En Marche (LREM) on September 21, 2018. Should the amendment pass, it would allow the French government to adopt the recommendations of what’s known as the Landau report, a proponent of New York’s BitLicense.
New York State Assembly legislator Ron Kim (D-40) has unveiled a bill that intends to protect cryptocurrency investors and ease the bureaucratic burden on crypto-related businesses. It’s the first comprehensive cryptocurrency bill in New York to make it past studies and commissions and into the hands of the legislative branch. Kim introduced the legislation on March 13, 2018, after he met with blockchain industry leaders on the subject.
Known as The New York Cryptocurrency Exchange Act (A9899), the bill relates to “the audit of cryptocurrency business activity by third party depositories and prohibits licensing fees to conduct such cryptocurrency business activity.”
Now that the year 2015 is in the books, Bitcoin enthusiasts and investors are looking ahead to what 2016 will bring for the digital currency. The past twelve months saw a record amount of VC funding flowing to various Bitcoin companies and startups, despite the not always positive news about Bitcoin. Will 2016 be the year of digital currency, or will the entire ecosystem be undermined by a certain type of user?
Quite a few Bitcoin enthusiasts are closely eyeing the regulatory proceedings in the United States. Multiple states are looking at ways to give Bitcoin a legislative and regulatory framework, affecting both individual users and companies in the area. After the disaster of BitLicense, California was the next state on the list to propose a framework draft. That Bitcoin bill was shut down quickly though, as it failed to pass in Legislature a few days ago.
Bitcoin and other virtual currencies offer tremendous potential in terms of creating additional jobs, wealth and economic stability all over the world; it should come as no surprise then to find out these are three of the key reasons why government officials are not too keen on Bitcoin becoming a part of their economy. After all, if wealth would be distributed on an even playing field and decentralization is the new way of life, what do we need governments for?
Bitcoin exchanges have to keep up with the competition if they want to stay relevant while adding innovative new features to their platform. Sometimes, those new features come in the form of taking a huge gamble to facilitate the buying and selling of Bitcoin. Even though credit cards were never intended to be used for online purchases, Bitcoin exchange Coinbase will start accepting card payments very soon.
Coinbase’s Aggressive Expansion Plan
The name Coinbase is synonymous with buying and selling Bitcoin in the United States, as well as 27 other countries around the world. Ever since the company opened its doors to the public, it became adamantly clear Coinbase was forging a path of expansion and did so at an aggressive rate.
One of the most worrying aspects of the BitLicense regulatory framework is the exodus of Bitcoin companies in the New York State area. Over the past few weeks, it has become quite clear that companies deciding to be compliant with BitLicense might face some serious backlash from its users. For those of you who are wondering which companies are actively pursuing a BitLicense, the following short list will give you an idea.
Bitcoin could do a lot of good in continents such as Africa, where there is a huge lack of financial services. This doesn’t mean the African population is not worthy of financial services, but institutions simply don’t expand there due to there being little to no profits to be made from doing so. Nigeria, on the other hand, is calling for Bitcoin regulation to counter money laundering and avoid international penalties.
Bitcoin regulation and more specifically the BitLicense debacle, will be making headlines for many more weeks to come. As the BitLicense application deadline is almost upon us, companies are forced to either apply or halt their services in the state of New York. Several companies have decided on the latter option as very few BitLicense applications are coming in. That being said, it looks like Coinbase, just like Bitstamp, will be applying for a BitLicense.
It was only a matter of time until the BitLicense regulation started claiming more victims in the Bitcoin mining industry. Not only are individual miners under the scrutiny of becoming money transmitters, but mining pools and even cloud mining providers could be affected as well. Genesis Mining, one of the very few legitimate cloud mining companies, will no longer accept customers from the New York state area.
The Bitcoin regulatory measures in the state of New York are causing quite a bit of controversy. Right now, there are more companies halting their service in this part of the world compared to the number of applications for a BitLicense. Even though regulation is necessary, too severe regulation leads to a mass exodus of companies. One of the few major Bitcoin companies completely unaffected by this regulatory measure is Bitcoin wallet provider Airbitz.
BitLicense is the first proper form of Bitcoin regulation in the United States, even though most Bitcoin companies do not agree with the proposed requirements. Whereas several Bitcoin exchanges are leaving the New York state area, Bitstamp has announced they will, in fact, be applying for a BitLicense in order to comply with current regulations.
BitLicense Causes Lots of Controversy
Bitcoin regulation is still an important aspect for digital currency to be recognized as a legitimate form of digital money. Yet at the same type, the first revisions of Bitcoin regulation are quite harsh, especially as far as BitLicense is concerned. Applying for a license is expensive, and there is a thorough process every company has to go through.
Bitcoin is causing quite a few headaches for legislators and regulators all over the world. Even though some countries and US states have come up or are close to coming up – with a regulatory framework for Bitcoin, not all of them are positive, especially New York’s BitLicense regulation, which is causing an exodus of Bitcoin companies in the state. The latest company to leave is BitFinex, the largest US Bitcoin exchange platform.
The city of New York is known for its rash decisions at times, especially when it comes to attempts at regulating decentralized and disruptive technologies. Bitcoin regulation in New York, still requires improvement, but it looks like the city council has learned its lesson. After a spat between New York and Uber, both parties managed to come to a last-minute agreement to evaluate the situation further.
Further Evaluation Of The Situation Is Warranted
Technological innovation is accelerating at an alarming speed in recent years, causing many headaches for governments, city officials, and regulators. Bitcoin has been the centre of a year-long study on how to regulate it in the city of New York; the end result has led to a small exodus of Bitcoin companies due to harsh and rash regulatory compliance requirements.
Bitcoin regulation is both a blessing and a curse, as regulators are trying to apply the same values and principles of traditional finance to a new breed of technology. However, that approach is not always beneficial to existing and up-and-coming businesses. In particular, New York’s BitLicense is raising a lot of questions.
Short Timespan To Complete Application
One of the main concerns surrounding New York’s BitLicense is the fact that existing Bitcoin companies have very little time to complete their application. If they fail or refuse, and continue their Bitcoin-related activity, they will be punishable by law for running an unlicensed business.