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New York lays down strict rules on Bitcoin operations

By Justin Kahn
Jun 5, 2015
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  1. It looks as though New York is the first state to put the lock on Bitcoin operations. Recently announced details outlines the state’s new regulatory rules towards businesses that deal in the cryptocurrency and operate out of New York. New York Superintendent of Financial Services Benjamin Lawsky has been working on the state’s regulations for some time now and in a speech at a recent emerging payments event in Washington revealed the new BitLicense requirement.

    During the recent speech, Lawsky said “We simply want to make sure that we put in place guardrails that protect consumers and root out illicit activity -- without stifling beneficial innovation.” Businesses won’t need to reapply when they update their services, unless it explicitly changes functionality. BitLicenses also will not be required for company’s that already have a regular money transmitter license.

    Only company’s that handle financial exchanges need apply for the license. Developers, retail outlets and others, won’t need to go through the Department of Financial Services to deal in Bitcoins.

    Lawsky believes the license will stop money laundering schemes and generally create a more legitimate cryptocurrency environment in the state. But as you are likely imagining, the Bitcoin community isn’t happy about it, with some advocacy groups claiming it’s actually a form of state-run money laundering in itself, considering New York banks aren’t required to follow a similar set of guidelines. New York is the first, but it’s easy to imagine other states across the US following suit.

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  2. davislane1

    davislane1 TS Evangelist Posts: 3,550   +2,352

    It's not a scam.
     
  3. yRaz

    yRaz TS Evangelist Posts: 1,898   +941

    This is nothing more than symbolic, they can't do anything about bitcoin and that's the whole point. It cannot be regulated by anyone. I guess this shows that governments are actually worried about bitcoin. They're doing this under the pretense that they're protecting us, what nerve.

    There is a possibility that this could have a huge impact on the price of bitcoin. It's being recognized by governments to the point they feel the need to regulated it. It will be interesting to see how this all plays out.
     
  4. davislane1

    davislane1 TS Evangelist Posts: 3,550   +2,352

    It can't be regulated directly, no. But you can regulate the hell out of it indirectly.
     
  5. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,492   +2,044

    The Fifa officials should've accepted their bribes in Bitcoins. Too late now.
     
    Last edited: Jun 8, 2015
    davislane1 likes this.
  6. davislane1

    davislane1 TS Evangelist Posts: 3,550   +2,352

    MLB umpires were on the Bitcoin bandwagon before it was cool. NFL refs, too.
     
  7. AnonymousSurfer

    AnonymousSurfer TS Guru Posts: 451   +37

    You can't regulate BitCoin as a currency, but they can regulate companies operating in New York who distribute BitCoin. It doesn't limit New Yorkers in the sense that we won't be unable to buy BitCoin, but it'll limit BitCoin ATM's and places to trade BTC for USD in person. Otherwise, we can just buy it from online exchanges, and people who accept BTC won't be restricted by these laws. I guess it's to try and make it so another MtGox won't happen. Not sure if it's the right move, but I don't feel to strongly for or against it. I guess we'll see how it turns out, but it's gonna take some time to see any real effects of it.
     

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