Bitcoin Exchange Bitstamp Applying for BitLicense
The controversial Bitlicense regulations recently passed in New York, spearheaded by former NY Department of Financial Services head Benjamin Lawsky, have stirred up their share of controversy in the Bitcoin community. Erik Voorhees of ShapeShift.io, an exchange that does not facilitate fiat-to-cryptocurrency trades, has compared the regulations to North Korean economics. However you feel about the Bitlicense, the new paradigm is that cryptocurrency businesses serious about operating in the Big Apple will be forced to play by the rules. Bitstamp has decided that it falls into the "serious"....
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In the aftermath of the BitLicense application deadline this week, a number of prominent bitcoin companies have ceased operations in New York. Although the reasons behind startups' reluctance to apply for a license are varied, cost has played a significant part. Of those who did apply - and fronted the $5,000 non-refundable application fee, most have alluded to an arduous process and high costs. But just how much did their expenditure amount to? CoinDesk has spoken to various companies in the space to breakdown the cost of the BitLicense application process both in monetary and....
An earlier version of this article indicated that Bitstamp, not Bitfinex, had withdrawn services from New York. Kraken and Bitfinex, two of the largest bitcoin exchanges by investment funding and daily trading volume, have indicated they will not be applying for licenses to operate in New York. The development is the latest in the ongoing debate over the BitLicense, New York's state-specific regulation for bitcoin businesses, which continues to be a lightning rod for criticism from both within the bitcoin community and more widely among mainstream technology advocacy groups. State....
Yet another bitcoin startup left New York State and declined to comply with the BitLicense. BitFinex, the largest cryptocurrency trading platform in the U.S has followed the lead of Poloniex and Shapeshift, announcing the closure of their operations on their blog this week. The BitFinex team wrote: BitLicense requires any digital currency related startups and exchanges to pay US$5,000 in application fees, US$20,000 in legal fees. “Due to financial regulation changes in the State of New York, certain Bitfinex services are no longer available for New York Residents. Bitfinex is not applying....
Industry analysts have stated that a BitLicense template is not the way forward for the U.K., according to a report from EuroMoney. In June 2015, the New York Department of Financial Services (NYDFS) released its application for a ‘License to Engage in Virtual Currency Business Activity’, also known as a BitLicense. The New York BitLicense was created to protect consumers from fraud and loss of money, but seems a tad bit invasive and time-consuming. Applying for the license involves large amounts of paperwork, burdensome reporting requirements, and expensive attorneys. Not only that, but....
While the BitLicense has caused many companies to leave New York, those that intend to stay are progressing though the regulatory process. This week, one of the world's largest Bitcoin services and wallet providers Coinbase became the 25thcompany to file for a BitLicense, which is expected to cost more than $100,000 in legal and compliance fees, according to Bitstamp Executive Vice President and chief legal officer George Frost. Since February, Coinbase has continued to work with the New York Department of Financial Services (NYDFS) to improve the regulations and restrictions set on....