NYDFS's Lawsky Outlines Revised Virtual Currency Regulatory Proposal
Financial institutions operating in or with New York state should be required to have a BitLicense to handle virtual currencies, said Benjamin Lawsky, New York State Department of Financial Services (NYDFS) superintendent, in remarks at the Bipartisan Policy Center Thursday.…
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Lawsky outlined proposed revisions to NYDFS virtual currency regulations. Coin Center, the Electronic Frontier Foundation and the Information Technology & Innovation Foundation were among those that filed comments on NYDFS’ October proposal (see 1410210038 and 1410220023). Those groups said the proposed BitLicense could create privacy and regulatory issues, particularly the BitLicense’s requirement to keep records of all bitcoin transactions. “Our initial proposal was meant as a beginning -- not an end -- to a healthy, vigorous public discussion about what the final regulation should look like,” Lawsky said in prepared remarks. But “many of the original proposals make sense, are good for consumers, and are good for the long-term health of the virtual currency industry,” he said. He said software developers wouldn’t be required to have a BitLicense. Virtual currency startups would be required to have a two-year “transitional” BitLicense, Lawsky said.