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New York Department of Financial Services: Virtual Currency Regulations [pdf]
- jeremyw 11y agoThe license fee is only a minor portion of your internal would-be licensing cost; think of it as an agency rate-limiter. This tweet mentions $100K, before insurance bonds, but others have estimated more. https://twitter.com/DCGco/status/629703816687038465 https://twitter.com/DCGco/status/629703816687038465
- jkkrrk 11y agowhat?? how is that possible?
- ceejayoz 11y agoHow is it not possible?
- deleted 11y ago[deleted]
- tgflynn 11y agoVery misleading title. Exemption from licensing requirements. The following Persons are exempt from the licensing requirements otherwise applicable under this Part: (1) Persons that are chartered under the New York Banking Law and are approved by the superintendent to engage in Virtual Currency Business Activity; and (2) merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or services or for investment purposes. EDIT: Also its not a law but a regulation created by the NYS financial regulatory agency under existing state statutes.
- heapcity 11y agoWho does it apply to then?
- deleted 11y ago[deleted]
- icebraining 11y agoThat's an exemption from the license.
- tgflynn 11y agoAside from exchanges and sites that hold other people's bitcoins that's a good question. It seems like it all depends on how they interpret "for investment purposes". A broad interpretation would seem to cover most uses, such as trading on localbitcoins.com. However localbitcoins.com decided on its own to disallow use by NYS residents after this regulation came out.
- protomyth 11y agoSo, if you mine bitcoins you need a license?
- ceejayoz 11y agoYou could probably argue that falls under "for investment purposes".
- mtinkerhess 11y agoSo what does that leave? Do you need the licence to mine?
- tgflynn 11y agoI believe Lawsky made statements to the effect that you do not. However I don't think there's anything in the regulation itself that explicitly addresses mining.
- deleted 11y ago[deleted]
- Karunamon 11y agoSounds like this only applies to exchangers then, because #2 covers 99% of use cases. Still, $5k license, jeez. What a ripoff.
- sctb 11y agoWe updated the title from “New York passes law requiring people to get $5k license to use Bitcoins”.
- deleted 11y ago[deleted]
- afarrell 11y agoThis seems to be intended to apply to people operating exchanges like Mt.Gox, not lay consumers and merchants. Of course, it's possible they've drafted it, but this part of page 6 seems pretty clear: Section 200.3 License... (c) Exemption from licensing requirements. The following Persons are exempt from the licensing requirements otherwise applicable under this Part: (1) Persons that are chartered under the New York Banking Law and are approved by the superintendent to engage in Virtual Currency Business Activity; and (2) merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or services or for investment purposes. We should get an actual lawyer to evaluate this, which I am not.
- mrschwabe 11y agoLaughable, but not surprising. This is just the kind of thing the Bitcoin community has predicted governments would do in an attempt to stifle/delay/prevent any potential financial revolution; to protect their fiat money printing monopolies.
- nadams 11y agoHere is more information: http://www.coindesk.com/ny-bitcoin-business-45-days-bitlicense/ http://www.coindesk.com/ny-bitcoin-business-45-days-bitlicen... https://act.eff.org/action/stop-the-bitlicense https://act.eff.org/action/stop-the-bitlicense