The New York Department of Financial Services (NYDFS) has released its long-anticipated list of proposed rules and regulations that will be required for New York-based bitcoin businesses.
The announcement came via a Twitter post fromBenjamin M Lawsky, New York State’s first Superintendent of Financial Services, who oversaw two regulatory hearings with digital currency leadersin January of 2014.
Notably, the document states that bitcoin businesses that receive, transmit, store or convert virtual currency for customers; buy and sell virtual currency as a customer business; control, administer or issue a virtual currency; or perform conversions between bitcoin and fiat or any value exchange will need to be licensed to operate in New York. Merchants that accept bitcoin are not included under the rules and regulations.
State officials say the document is designed to strike a balance between protecting consumers and implementing common sense rules, and that they are still accepting feedback on the proposal.
Superintendent Lawsky said:
“We recognize that – as the first state to put forward specially tailored rules for virtual currency firms – continued public feedback will be an important part of finalizing this regulatory framework. We look forward to carefully and thoughtfully reviewing public comments on our proposal.”
Source Article: New York Reveals BitLicense Framework for Bitcoin Businesses