The Real Cost of Applying for a New York BitLicense
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....
Related News
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....
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"....
The New York State Department of Financial Services (NYDFS) released the latest version of of its BitLicense proposal today, an event that sets off another 30-day comment period before the much-anticipated regulation can be finalized. The revised draft finds the state agency following through on a number of proposed changes it has previously announced publicly, while clarifying the intent and structure of the proposal. Overall, the revised BitLicense displayed a willingness by the NYDFS to both respond to concerns from the digital currency and wider business community while largely leaving....
Eobot, a cryptocurrency cloud mining company, will not serve customers in New York State as of July 1, 2015, on account of the recently finalized New York State BitLicense requirements. "If you are residing in and/or accessing Eobot within the State of New York, U. S., please withdraw all coins and cease all mining with Eobot as of July 1, 2015, as we are ceasing all Eobot mining connections from within New York at that time," the company announced on its website. We regret that we must cease Eobot business within New York State, however the new BitLicense requirements in this state place....
If New York was Jurassic World, BitLicense would undoubtedly be its Indominus Rex. The highly constrained New York Bitcoin regulatory framework has apparently forced another local company to shutdown its operations. This time, it is Eobot, a Bitcoin cloud miner, which decided to take down its banners within New York, stating that the state's new license requirements are putting additional cost burdens on them. "We regret that we must cease Eobot business within New York State, however the new BitLicense requirements in this state place compliance and cost burdens upon Eobot that we believe....