Lawsky at Blockchain 2015: I Can’t Advise on Getting a BitLicense

Former superintendent of the New York Department of Financial Services (NYDFS), Benjamin Lawsky, cannot help you get a BitLicense in his new private practice.

Lawsky spearheaded the creation of specialized regulations for virtual currencies in the state, which would require certain businesses dealing in virtual currency to get a “BitLicense”. The rules came into effect right before Lawsky departed from NYDFS for the private sector last month.

Lawsky, who took a tough line with banks during his tenure at NYDFS- earning himself the nickname of “Sheriff of Wall Street”- has been criticized by the digital currency industry for what they believe are excessively burdensome regulations. Taking a different route than most states considering Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term thus far, the BitLicense rules add additional requirements specific to virtual currency, over and above the standard money transmission rules that have been adopted. Industry players expressed concern that the rules will stifle progress and innovation.

Some have further accused Lawsky of deliberately engaging in a conflict of interest. They allege that Lawsky knowingly created tough rules in order to advise on how to navigate them later on.

At the American Banker Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term 2015 conference in New York yesterday, Marc Hochstein, editor-in-chief at American Banker, posed the question to Lawsky:

"To clear the air, what would you say to someone who would think that maybe you built yourself a revolving door?"

Lawsky responded that he is in fact barred from working on matters he engaged in while at NYDFS. "If anyone said, 'I want to hire you to help get a BitLicense from DFS,' no can do,” said Lawsky.

His new practice, The Lawsky Group, has been registered in Delaware but will operate out of Manhattan.