New York regulator plans relaxing cryptocurrency rules

26 Jun 2020

New York’s financial regulator has outlined new licensing rules that make it simpler for businesses to engage in cryptocurrency transactions.

The New York State Department of Financial Services is asking for the public’s input about the plan by mid-August. The initiative stems from the “actual or perceived hurdles” that firms may face in obtaining the state’s “BitLicense,” unveiled in 2015, the regulator said.

According to the NY Post: “New York’s proposed framework would allow companies that want to engage in virtual currency business activity in the state to obtain a conditional license, through which they would collaborate with fully licensed companies.”

The State of New York launched its BitLicense and initial framework in 2015, “when other regulators were still sceptical of virtual currencies,” said Reuters. 

“Those currencies are now part of a broader, rapidly growing industry that blends finance and technology, and which leading financial centres are keen to attract.”

There have been 25 licenses of this nature issued since then.

The news coming out of New York comes as legendary investor Jim Rogers has warned Bitcoin and similar “virtual currencies beyond the influence of the government” will not be allowed to survive.

“If the cryptocurrency succeeds as real money, rather than the subject of gambling as it is today, the government will make the cryptocurrency illegal and eliminate it,” Mr Rogers told Japan’s Aera dot in comments translated by Google.

Nigel Green, deVere CEO and founder, and high-profile crypto advocate discusses Mr Rogers’ highly unusual view in this short video.