The New York Department of Financial Services (NYDFS) is re-evaluating the requirements for the controversial BitLicense, a mandatory license for crypto companies willing to operate in the state of New York.
The prospect was announced on Tuesday by NYDFS Superintendent Linda Lacewell while speaking at Georgetown University’s Institute of International Economic Law during DC Fintech Week.
“This is a good time to take a look, a responsible look and see how our regime is fitting the current market and … what if any adjustments should we think about making to continue to adapt to sort of a changing industry … that’s going to be one of the things that [we do],” Lacewell told reporters at the conference.
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A controversial license to enter a US state
BitLicense is one of the toughest licenses needed to break into the state market in the United States. After its implementation in 2015, it received massive backlash from industry players. Crypto exchange Kraken terminated its operations in the state, calling it “a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.”
To date, the agency granted the license to 22 crypto companies; however, in the first three years of its introduction, only six companies succeeded in gaining the license.
The regulator now wants to involve the players from the sector to revisit the needs of the license.
“How has the industry grown? Has it matured in any way? And I don’t want to get too specific, but you know, it’s a good time for a second look,” Lacewell said. “The regulations are working well, but we want to hear from industry about how they’re operating in practicality for industry and if there are any tweaks that we should make.”