New York approves first virtual currency licence

Chris Hamblin

24 September 2015

In June, the state regulator published its final BitLicense rules after a lengthy inquiry into the appropriate regulatory guidelines for virtual currency firms, during which a flurry of virtual currency businesses left New York for the Isle of Man. Under this year's rules, existing virtual currency firms had until August 10 this year to apply for a licence. The timeline for the NYDFS's series of Bitcoin-related misadventures is as follows.

In August 2013, it asked interested parties what regulatory guidelines would be appropriate for virtual currencies.
In January 2014, it held public hearings on that virtual currency regulation.
In July 2014, it issued its draft BitLicense regulations for public comment, which was far from favourable. As one might have expected from a New York regulator, it originally intended to grant exemption to all banks.
In December 2014, stung by criticism, it updated its proposals. It proposed to create a two-year transitional BitLicense to help start-ups, inviting public comments.
In June 2015, it published its final BitLicense rules and invited applications from virtual currency firms.

The previous boss of the NYDFS, Ben Lawsky, resigned in June to set up his own legal and consulting firm. His deputy, Anthony Albanese, is the acting superintendent.