NY authorities to review BitLicense requirements

• To date, only 22 crypto companies have received the license for operating in New York.
• Kraken, a crypto exchange, had earlier ceased its operation in the state due to regulatory pressures.

The New York Department of Financial Services (NYDFS) is currently reviewing the requirements for BitLicense. It is a mandatory license required by the crypto companies to perform crypto-related operations in the state of New York. Speaking at Georgetown University’s Institute of International Economic Law during the DC Fintech Week, NYDFS Superintendent Linda Lacewell proposed the idea. Lacewell told the reporters at the conference:

“This is a good time to take a look, a responsible look and see how our regime is fitting the current market and “¦ what if any adjustments should we think about making to continue to adapt to sort of a changing industry “¦ that’s going to be one of the things that [we do].”  

BitLicense is one of the toughest licenses to be obtained for operating in the US. It also received several criticisms from industry players after it was implemented in 2015. Kraken, a crypto exchange, also ceased its operation in the state, calling it “a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.”

The agency has granted the license to only 22 crypto companies to date. However, only six companies obtained the license during the first three years of its introduction. Presently, the regulator wants to include players from the sector to review the needs of the license. Lacewell further added:

“How has the industry grown? Has it matured in any way? And I don’t want to get too specific, but you know, it’s a good time for a second look. The regulations are working well, but we want to hear from the industry about how they’re operating in practicality for industry and if there are any tweaks that we should make.”