“Bitcoin license application backlog, New York bitcoin center dream gradually eclipsed
New York’s financial regulator has been committed to becoming a global financial innovation center, like last year it adopted new rules: bitcoin virtual currency. But when the chief executive of the agency and authorized departure process in “hell”, the project lost power, and connivance of the opponent to catch up.
The rise of New York “bitcoin license, multi revenue
Since June 2015, the New York authorities have asked the virtual currency company in the business must have “bitcoin license”, holding the card company before allowing the dollar and other currencies into virtual currency transactions.
However, when Benjamin Lawski led by the Financial Services Authority (DFS) has set the rules for virtual currency early, other regulators are holding very skeptical.
Although it is unclear whether virtual currency will be recognized by the mainstream, but it has become an integration of financial and technology, and the rapid development of the industry, at the same time it also has sought financial center.
To their companies, regulators strict authorization marks, will provide the trust certificate for customers, and attract those products are still skeptical of the masses. The financial center of New York, which is one of the leading competitors around the world (also strive for the Internet financial business opportunity).
Project leading personnel leave, making New York dream fade
However, in the rules and regulations will come into effect on the occasion, Routh left the Financial Services Bureau, also took a number of well-known “bitcoin business license” of the senior staff.
Since then, DFS has released two “bitcoin license”, but there are 15 companies waiting. A spokesman said the four companies to withdraw the application, there are four companies rejected the application, there are only two virtual currency bitcoin company license “has received the traditional bank trust business.
In the Research Center for Internet and society at Harvard University’s Berkman lawyer Klein Patrick Merck and his colleagues said that the New York authorities will charter together, and almost all of the key employees after leaving, they really make the industrial backwardness and people, and in a way is almost in phase with the traditional service competition.
Merck said, most of the virtual currency company operating in New York, when the regulations take effect when can do business there, and wait for the license approval. But start-ups are likely to face difficulties in financing and business tightening.
Compared to the traditional financial industry, virtual currency share almost very little, but since the bitcoin since its launch in 2009, has experienced rapid growth. Now there are other virtual currency, virtual currency and also have a broader range of uses.
According to the information website Coindesk data show that the current bitcoin market capitalization of about $10 billion 700 million, $1 billion less than three years ago.
The approval is slow and demanding, so hard
With the development of the market, financial centers around the world are actively competing to attract new business. But compared with some rely on light regulatory companies, New York “bitcoin license” appeal is that it provides a clear legal framework.
However, the slow approval process and stringent requirements, some companies are making prohibitive”.
Virtual currency Swiss company shapeshift.io CEO in the company to explain, why not doing business in New York said, “bitcoin license” forcing companies to extract personal user private information, create a hacking, this will form a legal risk.
At the same time, GoCoin company CEO Steve Bulgad also told Reuters, New York license is not worth it, the procedure is too heavy, especially for small companies.
Digital currency Law Corporation head of PillsburyWinthropShawPittmanLLP MarcoSantori said at least 15 companies have shied away from New York. He advises clients to focus on the state such as California, he believes that regulators are unlikely to take action immediately to the digital currency company. In Washington, for example, since 2013, on the basis of long-term money transfer business regulations, has issued seven licenses to the virtual currency company.
In foreign countries, like Japan, has developed a standardized system for digital currency transactions; and the country, like Bolivia, in a total ban on the business. Some countries are trying to adjust the tax policy and the existing laws and regulations, money laundering and other illegal activities emerging. But “bitcoin license” or is a unique method.
In the implementation of strict examination and successor, clearing the backlog of applications
People familiar with the “bitcoin license” process based on Routh said, delayed successor, weakened the momentum of the program stride forward singing militant songs.
At the same time, in June 2016 the approval process of the new manager MariaVullo said in an interview with Reuters, which is trying to clear the backlog of applications for DFS. However, she also said that due to the risks involved in, review must be thoroughly.
Moreover, launched in New York “bitcoin license approval procedures after the collapse of the Tokyo stock exchange lost an estimated $5 trillion and 600 billion worth of bitcoin assets. Vullo pointed out that this is not a video game, it involves people and real money deposit.
Finally, Washington digital currency research and advocacy center director JerryBrito said, the company said: “we do not intend to do business in New York, he does not think this is rare.