BitLicense
A BitLicense is the common term used for a business license issued by the New York State Department of Financial Services (NYSDFS) under regulations designed for companies engaged in virtual currency business activities.[1][2][3] The regulations are limited to activities involving New York or a New York resident. Those that reside, are located, have a place of business, or are conducting business in the State of New York count as New York Residents under these regulations.[4]
The regulations define virtual currency business activity as any one of the following types of activities:
- receiving Virtual Currency for Transmission or Transmitting Virtual Currency, except where the transaction is undertaken for non-financial purposes and does not involve the transfer of more than a nominal amount of Virtual Currency,
- storing, holding, or maintaining custody or control of Virtual Currency on behalf of others,
- buying and selling Virtual Currency as a customer business,
- performing Exchange Services as a customer business, or
- controlling, administering, or issuing a Virtual Currency.
But, the 2 following activities are excluded from the definition of virtual currency business activity:
- development and dissemination of software in and of itself,
- merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or services or for investment purposes.[5]
It came into effect on August 8, 2015. Several bitcoin companies announced they were stopping all business in New York State because of the new regulations.[6][7] The New York Business Journal called this the "Great Bitcoin Exodus".[6]
In September 2015 the first BitLicense was issued to Circle Internet Financial.[8][9][10][11]
References
[12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25]
- ↑ Michael J. Casey (3 June 2015). "NY Financial Regulator Lawsky Releases Final BitLicense Rules for Bitcoin Firms". WSJ.
- ↑ "New York lays out requirements for a 'BitLicense'". Fast FT.
- ↑ Kaja Whitehouse, USAToday (3 June 2015). "'Bitlicense' rules regulating bitcoin released". USA TODAY.
- ↑ "New York BitLicense Application Geographic Limits". NorthBot.com. Retrieved 4 December 2015.
- ↑ "“Virtual Currency Business Activity” definition for New York BitLicense application". NorthBot.com. Retrieved 4 December 2015.
- 1 2 Michael del Castillo (August 12, 2015). "The 'Great Bitcoin Exodus' has totally changed New York’s bitcoin ecosystem". New York Business Journal.
- ↑ "Bitcoin company ditches New York, blaming new regulations". Fortune.
- ↑ Paul Vigna. "Circle Gets First ‘BitLicense,’ Releases CirclePay, New Service". WSJ.
- ↑ Karen Freifeld (September 22, 2015). "NY regulator issues first license for bitcoin company". Reuters.
- ↑ Curt Woodward (September 22, 2015). "Circle gets first bitcoin license from New York regulators". betaboston.com.
- ↑ NYDFS (September 22, 2015). "Press Release - NYDFS ANNOUNCES APPROVAL OF FIRST BITLICENSE APPLICATION FROM A VIRTUAL CURRENCY FIRM". ny.gov.
- ↑ Cameron Fuller (31 January 2014). "Bit Licenses: How Will New York Regulate Bitcoins?". International Business Times.
- ↑ "Benjamin Lawsky unveils New York's historic BitLicense framework - New York Business Journal". New York Business Journal. 3 June 2015.
- ↑ "Fmr New York bitcoin watchdog can't help bitcoin startups get license - Fortune". Fortune. June 11, 2015.
- ↑ Ian McKendry (3 June 2015). "After N.Y. Makes 'BitLicense' Official, Focus Moves to Who's Next". American Banker.
- ↑ "New York Releases Final BitLicense". CoinDesk.
- ↑ Michael Bobelian (8 June 2015). "NY's BitLicense Reveals The Difficult Trade-offs Of Regulating Bitcoin". Forbes.
- ↑ "NYDFS BitLicense Draft - Business Insider". Business Insider. 17 July 2014.
- ↑ "What BitLicense Regulations Mean for Bitcoin". NASDAQ.com. 10 June 2015.
- ↑ "New York Outs Final BitLicense For Bitcoin And Other Digital Currency Companies". Tech Times.
- ↑ "New York Regulator Finalizes First-Of-Its-Kind Plan To Govern Virtual Currency With “BitLicense”". Consumerist.
- ↑ "UPDATE 2-New York regulator issues final virtual currency rules". Reuters.
- ↑ Mariella Moon. "New York sets rules for running Bitcoin exchange businesses". Engadget. AOL.
- ↑ "Companies burdened by BitLicenses real cost - EconoTimes". EconoTimes.
- ↑ "NYDFS Receives 22 Initial BitLicense Applications". CoinDesk.
External Links
- Virtual Currencies in (Part 200 of Title 23 of) the New York Codes, Rules and Regulations
- BitLicense Frequently Asked Questions From NYSDFS
- New York BitLicense Application Knowledge Bank From NorthBot.com
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