New York financial regulators are beginning to review Bitcoin startups

nnnThe New York State Financial Services Authority (NYDFS) recently released a new document on the digital money licensing system, which has revealed that it has begun to review the region’s digital money startups. According to NYDFS, it has issued licenses or bank licenses to some companies, which are included in the regulatory framework, indicating that some progress has been made in the regulation of such companies.n
nnTranslated by: Inan
nThe New York State Financial Services Authority (NYDFS) has issued new information on the status of its digital currency licensing system.n
nNYDFS provides a brief description of all its activities, which is part of a broader annual report to governors and legislatures. The document emphasizes that NYDFS believes that the industry still needs to be supervised in view of the fact that block-chain technology improves “transaction speed”.n
nIt is noteworthy that the agency also revealed that it has begun to review the operation of digital currency startups serving New York clients.n
nFile wrote:n
nn”DFS has already begun to check these virtual currency companies, which are subject to regular inspection of DFS as other regulated financial services entities.”n
nnA law in 2015 stipulates that digital money start-up companies must agree to accept at least once every two years. Such inspections allow the regulatory body to review its “books, records, accounts, documents” and other company projects.n
nNYDFS also said it has granted five virtual currency company licenses. At present, Circle, Coinbase and Ripple have received the so-called “BitLicense”, while other companies, including Gemini and itBit (now renamed Paxos), then get a bank license, which is another way of supervision.n

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