Update on NYDFS BitLicense

Update on NYDFS BitLicenseThe NYDFS BitLicense is legislation that severely limits bitcoin use for business and individuals. ​Bitcoin businesses and enthusiasts are concerned not only about this specific legislation, but also the concern of setting a precedent that could influence other state's and even federal laws. MIT's new Digital Currency Initiative director Brian Forde moderated an industry roundtable that included Circle, BitPay, Xapo, Visa, and Coinbase.

They suggest four changes to the bill that Coinbase describes in depth on their website that are summarized below:

  • Regulate exchangers, not the protocol
  • Eliminate or amend duplicative policies and licenses
  • Allow companies to launch new features and updates through a notification or alert to the NYDFS rather than explicit permission
  • Increase control threshold for companies to obtain NYDFS approval for venture financing