BitLicense Takes Effect Today, 45-Day Transitional Period Begins
- The rules governing how virtual currency businesses operate in New York State have officially become law, effective today.
The recently finalized rules governing how virtual currency businesses operate in New York State have officially become law, effective today.
Also known as the BitLicense, the rules are filed under "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 of the Conduct of Virtual Currency Businesses" in a Notice of Adoption published today in the New York State Register.
The rules were formulated by the New York Department of Financial Services (NYDFS), led by outgoing superintendent Benjamin Lawsky. In the works for nearly two years, an initial draft was produced last summer, attracting over 3,700 comments. A revised draft, accounting for some of the feedback, appeared in February, and the final version earlier this month.
According to the notice, the latest changes are considered "nonsubstantive."
The rules form a newly added section, Part 200, to Title 23, Department of Financial Services, in the New York Codes, Rules and Regulations (NYCRR).
The notice goes through a synopsis of comments received on the rules, and attempts to address concerns expressed in each. One of the biggest points of contention was the need for dedicated licensing. Many argued that "virtual currency should be regulated under existing money transmission law or not at all." To this, the notice responds:
"The Department has extensively considered the need to regulate virtual currency business activity and the appropriate way to do so, and it has concluded that a new regulation under the Financial Services Law is necessary to protect New York consumers and users of virtual currency related services."
Businesses dealing in virtual currency have a 45-day grace period, during which they can apply for license and still be deemed in Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with licensure requirements while their application is considered. Those that have not applied will be deemed to be conducting unlicensed Virtual Currency Business Activity.
The recently finalized rules governing how virtual currency businesses operate in New York State have officially become law, effective today.
Also known as the BitLicense, the rules are filed under "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 of the Conduct of Virtual Currency Businesses" in a Notice of Adoption published today in the New York State Register.
The rules were formulated by the New York Department of Financial Services (NYDFS), led by outgoing superintendent Benjamin Lawsky. In the works for nearly two years, an initial draft was produced last summer, attracting over 3,700 comments. A revised draft, accounting for some of the feedback, appeared in February, and the final version earlier this month.
According to the notice, the latest changes are considered "nonsubstantive."
The rules form a newly added section, Part 200, to Title 23, Department of Financial Services, in the New York Codes, Rules and Regulations (NYCRR).
The notice goes through a synopsis of comments received on the rules, and attempts to address concerns expressed in each. One of the biggest points of contention was the need for dedicated licensing. Many argued that "virtual currency should be regulated under existing money transmission law or not at all." To this, the notice responds:
"The Department has extensively considered the need to regulate virtual currency business activity and the appropriate way to do so, and it has concluded that a new regulation under the Financial Services Law is necessary to protect New York consumers and users of virtual currency related services."
Businesses dealing in virtual currency have a 45-day grace period, during which they can apply for license and still be deemed in Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term with licensure requirements while their application is considered. Those that have not applied will be deemed to be conducting unlicensed Virtual Currency Business Activity.