New York state publishes BitLicense rules

New York state publishes BitLicense rules

New York state's financial watchdog has published its 'BitLicense' rules governing companies involved with crypto-currencies.

The regulatory framework is the result of more than 18 months of work from the New York State Department of Financial Services’ (NYDFS) and is designed to boost consumer protections and guard against money laundering while still helping to nourish the nascent bitcoin industry.

BitLicenses will be needed by financial intermediaries in the state dealing with cryptocurrencies, but not users, merchants or software developers. For startups a transitional license with a more "flexible framework" will be on offer.

The final version of the framework is largely unchanged from a December draft but does make clear that firms will not need prior approval for standard software or app updates, or for new rounds of venture capital funding.

In a speech on Wednesday, superintendent Benjamin Lawsky conceded that "we are not going to satisfy everyone" but that "our goal, as always, is to be sensible and fair".

Lawsky - who after leading the charge on bitcoin is quitting his role to enter the private sector - reiterated his belief that crypto-currencies have the potential to "drive long-overdue changes in our ossified payments system".

Read the regulations:
» Download the document now 81.7 kb (PDF File)

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