Changes to NYDFS BitLicense Have Been ‘Beyond Positive;’ NY Hopes to Become Tech Hub

New York Department of Financial Services (NYDFS) superintendent, Linda Lacewell, has said that crypto-based firms have reacted positively to the recently enacted changes on the Bitlicense.

Speaking during the Global Webinar Series on July 14, Lacewell noted that the new changes seem to have been well-received despite a few still critiquing the regulator. Earlier on, NYDFS suggested modifications to make it easier to acquire the Big Apple crypto license by introducing new provisions such as self-certification and a conditional license attributed to partnerships with operating entities.

Lacewell went on to note that interested licensees are pursuing additional approvals to scale their crypto businesses within New York:

“We’ve even had some licensees tell us that they’re very excited and interested in pursuing additional licensing with other potential parties that are all partners in the space.”

This success has been part of a collaborative effort between the NYDFS and stakeholders, whether licensed or unlicensed. Lacewell was keen to acknowledge this partnership, adding that she was not surprised that it is gradually paying off.

Back when she took office last year, Lacewell and the NYDFS had a considerable backlog of Bitlicense applications, including Bitstamp’s, which was in the queue for almost four years. This has, however, taken a different turn after Lacewell appointed personnel to focus on Bitlicense applications specifically. Since then, six entities have been granted a Bitlicense approval.

New York Gradually Turning to a Crypto Hub

Despite its corporate status in America and globally, New York was a bit hesitant to accept digital currencies. At some point, firms had to relocate shops following multiple crackdowns by the NYDFS.

This is now taking a different turn after the regulator’s latest moves signal the will to forge a definitive path for crypto innovators. According to Lacewell, this process is essential in the prevention of bad actors leveraging the ambiguity to commit financial crimes. That said, Lacewell is optimistic that the new NYDFS outlook towards crypto activity will attract more stakeholders in the long-run:

“We want innovators right here in New York, which has been the birthplace of so much invention and ingenuity, historically, and has always set the standard, not just for the rest of the country but the world. That’s what it means to be the birthplace of immigration because change agents come here and we want you here.”

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Author: Edwin Munyui

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