BitLicense can work in New York?

BitLicense can work in New York?

Recently, BitLicense (currency license) has been a hot topic. New York state’s Department of financial services (NYSDFS) discloses the outgoing head of the final version of BitLicense. After a year of deliberation and revision, New York became the first American state to trade the use of encryption currency. Once the BitLicense regulations into effect fully, or any bitcoin related business of electronic money, want to set up shop in New York, to achieve all the requirements of the Ordinance, it must also be approved by the NYDFS.

BitLicense what are the requirements of the company?

BitLicense the initial draft was set in July 2014. Since then, after a number of modifications to become the version. When the first draft is serious criticism too hard, can let the upcoming electronic money industry to a certain extent of death. Therefore, the official has made the revision to solve this problem, finally, only a small part of the solution.

BitLicense was inspired by the country’s existing fund law. Anti money laundering, network security, information technology needs to make BitLicense more difficult to control than the national requirements of the bank (the actual situation of big companies do not consider most of the electronic money company is based on the new company, and no bank management).

There are a large number of documents, law enforcement and judicial stakeholders and managers in the affidavit, in addition to these, the electronic wallet and financial institutions, identity information and mobile phone platform of each consumer transactions on the. The company must also collect transaction information between the two parties. The products or services of any changes must be approved by the NYSDFS.

What BitLicense means bitcoin transactions?

Bitcoin as a financial tool, the state of New York for any bitcoin transactions need to apply for BitLicense. Meet the bitcoin regulations need some human and financial resources. The company must establish a compliance procedure, and appoint a compliance manager to oversee the anti money laundering, network security and information technology process. But for the new bitcoin company, it is almost impossible to comply with all conditions.

What is the effect of BitLicense bitcoin ideology?

Bitcoin is built in to the center of the ideology of the conventional removal by the government, banks and financial institutions to create the trust system. By creating a zero trust system, bitcoin network makes money democratization, so that people can not through the government’s control, direct anonymous transfer.

The bitcoin ideology by the BitLicense threat. The government supervision once again focused on creating a trust system.

Bitcoin has been to provide a safe and convenient way to transfer all over the world, but also in developing countries to provide financial services to non bank account.

How will this end?

New York bitcoin companies now have two choices: either for BitLicense or stop operation. A few have already complied according to the requirements of BitLicense. ItBit is the first BitLicense companies, some companies are still thinking about what to do next, bitcoin company is likely to decide to leave New York will not succumb to BitLicense.

ShapeShift.io became the first announced to leave New York electronic money company. ShapeShift.io (instant encryption currency trading site) has decided to terminate the service in New York, do not run the column BitLicense.


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