NYC’s Bitcoin Snafu

Note from the CEO: Well, why is this NOT a surprise. A new fast growing technology that can create multitudes of jobs, a city that wants to become a hub for all that creativity (and the prestige), environmentally friendly and very, very few critics. What could go wrong? Ah yes, the regulators. Gotta get a “Bitlicense”, fill out forms (lots and lots) and…..AND…..pay those fees. No surprise that New York may lose out of their “bitcoin hub” dreams.

“New York’s financial regulator had sights set on becoming a global hub for innovations like bitcoin when it adopted trailblazing virtual currency rules last year. But the state lost that momentum when the agency’s chief left, putting a licensing process in limbo and allowing rivals to catch up.

For companies, a stamp of approval from a tough regulator offered a chance to win over customers who remained dubious about the product. For New York, it was an opportunity to get ahead of rivals around the world that were also trying to woo “fintech” business.

Yet just after the regulations came into force, Lawsky left the agency. Some senior staffers with BitLicense expertise soon followed him out the door.

Since then, DFS has issued just two BitLicenses. Another 15 applications are still pending, with four others withdrawn and four denied, a spokesman said. Two more virtual currency companies have received trust charters, which treat them more like traditional banks.”

Read Full Article at CNBC