Bitcoin regulation bill is struck, the angel or devil?

Bitcoin regulation bill is struck, the angel or devil?

Far from perfect.” Not appropriate.” “No fun”

These comments are from bitcoin digital currency and the community, is the first reaction in the final version of the BitLicense message heard after the enactment of the New York act, the regulatory framework of this long-awaited introduction, although no ground for blame but after, the specific implementation measures for the two years of debate, because before the media hype will it be too high value as a milepost type expectations between trigger and regulations after the introduction of the reaction still present a serious contrast.

Even if the BitLicense success will be the industry of “legality”, apparently, they think the law and those issued for emerging technology had emerged in the past there are many similarities of the laws and regulations permit.

“They told the old version only changed a little, this is ridiculous,” Yale Law School Elizabeth told CoinDesk.

Once claimed to try to prevent such laws and regulations of the nonprofit Coin Center executive director Jerry Brito said: “the only good news is that now the enterprise can clearly understand their obligations in some areas where. This is a page BitLicense “can say the words. “

Brito tone is a notable feature of social media voice, we can also see the group and so on, such as vice chairman of the bitcoin foundation and the board of directors of BitFury George Kikvadze had verbally condemned the regulations, investors and affected parties such as VC Barry and Silbert BitGo CEO Mike Belshe has only said the helpless.

Those business leaders concerned in the field of the Internet. This reaction is relatively flat overall mood, some flattering, some people are more “intuitive” that it would be successful act.

“I can try it?” Asked the chief executive of Circle Jeremy Allaire.

“Of course, but I think it is an important post in the ground.”

The problem still exists

In accordance with the provisions of this law, compared with the traditional financial services companies, bitcoin startups gate faces even higher.

Another reason is that the law has been criticized, for some practical needs of regulation in the field is not completely covered. May make startups focus on the existing business model is not suitable for the products.

For example, alair about the key escrow issue, one of the private key of a company can hold customer funds, but not all. This is obvious in the network has been repeatedly discussed topic, but not covered by the regulation.

Other representatives of the industry have expressed their disappointment, but they also said it would seek cooperation and the New York Financial Services Bureau, the relevant provisions and follow the BitLicense work.

“For companies such as Circle, it is very boring,” Allaire said.” But for others, has little effect.”

In the face of CoinDesk, John Collins, head of policy and government affairs related to the Coinbase, the expression of the inconsistency of the law and federal law outline protest.” Worrying is that, compared with traditional financial institutions, this emerging industry is suffering from more stringent regulations “Collins said.

VC CEO Adam Delle Per expressed the same negative evaluation. Business incubator program Draper invested 21 bitcoin company, recently he showed that the new regulations will greatly increase the cost of compliance with the law.” Open a new Bitcoin company will spend more money. But innovation is to make you more money “Draper told CoinDesk.” Obviously, this is not ideal.”

positive factors

Some people take a more neutral tone.

“We are outspoken for anything concerned. When the BitLicense draft out, for some specific provisions, in our view, to completely follow it in single is technically impossible, so we have to stop using bitcoin or see things change “Allaire said.

Digital currency research at MIT (DCI) director Brian Forde praised the New York Financial Services Department and the New York Financial Services Bureau on the company’s accounts show that the provisions of the law may be by encouraging new interest and financial support, ecosystem to bitcoin system causes a positive impact, “told CoinDesk:

“I’m glad to see that the financial services department director and his team can hear the positive feedback sound from the bitcoin community, they update the rules and explanation, they are committed to protecting consumers, and to promote more in this space venture company investment efforts.”

Juan Llanos, bitcoin fund and Bitreseve risk and compliance experts said that in these traditional financial institutions under the background, he said the law is “fairly standard”.

He also has both sides on this issue is not related to the expression of views.” I think that caused such an uproar because DFS has clear requirements, related regulations and related before (such as network security, and the obligation) to a new generation of entrepreneurs relative lack of management experience, they expect the financial services world does not want to have more restrictions, “he said.


Because attracted considerable media attention, there is no doubt that BitLicense has access to the road to success in helping the industry to make due contributions.

For this, Allaire believes that this will help in the digital currency industry and set up better to get more partners ltd.. Others, such as digital business President Perianne Boring said her non-profit organization will work for small enterprises to improve their competitive level of service, she believes that the industry lacks a clear channel”.

Overall, BitLicense may actually be a milepost, or that it is a stepping stone to open a dialogue mechanism for a long period in the future between regulators and industry, it will be a far-reaching event.

“Because we are considering how to find a way to be close to the virtual currency, so we pay close attention to the progress of New York and other places of the supervision regulations, a company spokesman told CoinDesk.” We will analyze the regulations published today, and we will continue to discuss.”

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