NYDFS mulling transitional BitLicense for small businesses
Bloomberg reports that The New York Department of Financial Services (NYDFS) is considering a transitional BitLicense for small businesses and startups. So said Ben Lawsky, the Department's superintendent during a keynote address at the Money 20/20 conference in Las Vegas.
The consideration comes in response to critical feedback on the BitLicense proposal. Many Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that firms and individuals feel that if enacted, the current proposal would overburden smaller businesses, forcing them to close and stifling innovation.
A lighter version of the license would take into account factors like: the business's transactional volume, mitigating risk controls already in place, the nature of the business and whether it is already registered as a Money Services Business with FinCEN.
These factors would seem to account for recent arguments that rules should be "risk-based" and that existing FinCEN regulations are already sufficient.
Small businesses which meet the right criteria would be allowed to operate under a more relaxed regulatory framework for a given period of time. The specific elements of License which would be affected weren't discussed. It is expected that they would appear in the final draft, slated for January.
Lawsky emphasized the importance of preventing Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund , "which facilitates sometimes unspeakable crimes." At the same time, balance is needed, as already observed when regulating small financial institutions: "We recognize that if a financial firm has 12 employees – and nine of them are compliance officers – that is not a winning business model."
Bloomberg reports that The New York Department of Financial Services (NYDFS) is considering a transitional BitLicense for small businesses and startups. So said Ben Lawsky, the Department's superintendent during a keynote address at the Money 20/20 conference in Las Vegas.
The consideration comes in response to critical feedback on the BitLicense proposal. Many Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that firms and individuals feel that if enacted, the current proposal would overburden smaller businesses, forcing them to close and stifling innovation.
A lighter version of the license would take into account factors like: the business's transactional volume, mitigating risk controls already in place, the nature of the business and whether it is already registered as a Money Services Business with FinCEN.
These factors would seem to account for recent arguments that rules should be "risk-based" and that existing FinCEN regulations are already sufficient.
Small businesses which meet the right criteria would be allowed to operate under a more relaxed regulatory framework for a given period of time. The specific elements of License which would be affected weren't discussed. It is expected that they would appear in the final draft, slated for January.
Lawsky emphasized the importance of preventing Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund , "which facilitates sometimes unspeakable crimes." At the same time, balance is needed, as already observed when regulating small financial institutions: "We recognize that if a financial firm has 12 employees – and nine of them are compliance officers – that is not a winning business model."