Circle has submitted their comments on the New York Department of Financial Services’s (NYDFS) BitLicense proposal. They and BitPay are among the final contributors of commentary, for which the submission period is now closed.
Their 12-page letter, signed by General Counsel and Chief Compliance Officer Jon Beccia, expressed appreciation to the NYDFS for its efforts and acknowledged the challenges of the task that lies ahead. It was also very direct, however, about how the proposed regulations will affect Circle’s business decisions:
“There are several requirements that are so burdensome (and in some cases nearly impossible to comply with) that if the Proposed Rule were to be enacted in its current form. Circle would have no choice but to exclude New York residents from its service.”
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It went on to stipulate Circle’s five concerns, several of which echo those expressed by BitPay and others. These include the implied scope of the license encompassing all types of bitcoin-related businesses.
It should be noted that shortly before the publication of both BitPay’s and Circle’s letters, Lawsky stipulated that the proposed BitLicense would indeed not be applicable to software developers. Only “financial intermediaries” will be subject, he said during a talk at the Benjamin N. Cardozo School of Law in New York.
The letter also echoed arguments that existing regulations are sufficient for cover the industry, but candidly took it a step further. It questioned the need for a BitLicense altogether.
The second half of the letter took a deep dive into the proposal’s content, making comments on specific passages.