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NYDFS to Update BitLicense’s Terms for the First Time in 5 Years


NYDFS to Update BitLicense’s Terms for the First Time in 5 Years

The NYDFS plans to update its virtual currency license, BitLicense, for the first time in nearly 5 years

The New York Department of Financial Services (NYDFS) is planning to update its virtual currency license for the first time in nearly five years.

The authority has published proposed guidance on adoption or listing of virtual currencies on its website on Dec. 11, inviting all interested parties and the general public to comment by Jan. 27, 2020.

Two major listing updates coming, maybe

As officially announced, the newly proposed guidelines on listing refer in particular to the BitLicense — a major business license for cryptocurrencies defining rules on operating with crypto, management, administration and others.

Specifically, the guidance includes two major updates related to the process for crypto-related businesses in New York State to list new cryptocurrencies .

The first proposal stipulates that the NYDFS will provide a list of all coins that are allowed for virtual currency business activities without the prior approval by the authority.

The second update includes a proposed model framework for coin listings that can be implemented to create a specific coin listing or adoption policy. If approved, such proposal will enable the licensee to self-certify the listing or adoption of new coins in addition to those listed in the first proposal, the regulator noted.

NYDFS’s action aims to provide more regulatory clarity and efficiency

According to the statement, the NYDFS has not updated the rules in the license since the summer of 2015, after the regulator released the proposed regulatory framework back in 2014. The authority noted that the upcoming updates intend to provide regulatory clarity and efficiency, while ensuring that the NYDFS’ approach to regulating crypto-related businesses “reflects the realities of an evolving market.”

The NYDFS has been apparently working on providing more efficiency to the cryptocurrency ecosystem in the state as the company has granted as many as 24 BitLicenses to date.

In early October, the regulator was reported on hiring a specialist with expertise in the field of virtual currencies and blockchain. According to the announcement, the NYDFS was looking to employ a Deputy Superintendent in the Research and Innovation Division that will be in charge of policy decisions and the regulation of emerging and innovative market.

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