One of the stepping stones through which cryptocurrency can become mainstream is the various regulations and rules that allow crypto to integrate itself into the global financial world as well as accelerate its use for the general public. One of these tools is the bitlicense that is issued in the state of New York by regulators and is required for any business willing to enter into the digital assets business. This license, while controversial in some parts of the crypto industry, has helped to regulate the market and control who goes in and out of digital assets services.
While the bitlicense has been in existence for several years now, the New York Department of Financial Services (NYDFS) has recently announced that it will be updating the laws surrounding it for the first time in five years.
On December 11, 2019, the department posted guidelines on adoption or the listing of virtual currencies on their website and have invited the members of the public to comment on it up until January 27, 2020. These new guidelines pertaining to the bitlicense which is required for any business that wishes to go into digital assets in the state of New York and this post on their website contains two major updates to the previously existing bitlicense law.
The first major change that is being proposed is the department creating a list of digital assets and tokens that can be traded on without pre-existing approval from the department. The second change is a proposed framework that will enable the implementation of self-issuing and certification of tokens which means that licensees can certify the tokens they wish to trade in in addition to the ones that are pre-certified by the department.
These rules have not been updated since the summer of 2014 when they were first released and according to the official post, the department is seeking to make these changes in order to keep up with the times and confront the realities of the ever-evolving crypto industry. This is a welcome development as this is often stated that many crypto laws do not take the complex nature of the industry into account and the department seems to be trying to avoid this.