Chamber of Digital Commerce on proposed “Bitlicense”: It can crush Bitcoin industry

Perianne Boring, President of the newly formed Chamber of Digital Commerce, echoed the increasing criticism levelled at the recently unveiled “BitLicense”

Perianne Boring, President of the newly formed Chamber of Digital Commerce, echoed the increasing criticism levelled at the recently unveiled “BitLicense” proposal for New York State.

The proposal was spearheaded by Ben Lawsky, Superintendent for the New York Department of Financial Services (NYDFS). The draft requires any business dealing in virtual currency to be licensed. License holders are required to follow rules ensuring the safety of client funds, the enforcement of anti-money laundering (AML) controls and other miscellaneous items.

Join the Leading Industry Event!

Suggested articles

Five Common Mistakes Traders MakeGo to article >>

While there was initially positive reaction from the industry’s bigger players, the proposal later came under fire from many others arguing that it was far too onerous, especially for smaller businesses. Such a restrictive set of rules, they maintain, would stifle the Bitcoin industry in one of its most valuable markets. The proposal is allowing for feedback for 45 days, a period some have argued is too short.

Boring shared this sentiment while speaking at the Coin Congress in San Francisco: “One egregious aspect is that the NYDFS is only giving 45 days to comment, which is severely inadequate to proposed regulations of this scope. We are requesting that the NYDFS extend the comment period through the end of 2014, to allow the industry adequate time to properly review and respond.”

Boring launched the Chamber to represent the views of the digital currency world, with a focus on advocating digital currency to government and educating them about it.

Got a news tip? Let Us Know