Benjamin Lawsky Proposes Transitional BitLicense for Small Cryptocurrency Firms

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Benjamin Lawsky Proposes Transitional BitLicense for Small Cryptocurrency Firms

ForexMinute.com – In his crucial speech at a Las Vegas event, Benjamin Lawsky proposed “Transitional BitLicenses” to reduce the regulatory burdens from the small-time cryptocurrency businesses. As per the words of the NYDFS Superintendent, this new approach will provide enough small virtual currency firms enough time to grow before coming face-to-face with a fully designed regulatory framework.

NYDFS was well-criticized earlier by the entire cryptocurrency community for press-ganging a biased and unfair cryptocurrency regulatory framework, known as BitLicense. According to some of the leading entrepreneurs within the Bitcoin community, the NYDFS proposal could actually shrink New York’s cryptocurrency market to zero.

The growing criticism forced NYDFS to halt BitLicense, and move it to a commenting period to figure out further views. There are many leading Bitcoin companies that submitted their replies against the proposed law, leading NYDFS to actually re-review it from scratch. As a result, the organization excused Bitcoin miners and software developers from obtaining the license a few weeks ago. And now, they are further reducing the burden of small businesses by making more amendments.

“There has to be a way for startups to start up, to play by the rules without getting crushed by huge compliance costs,” said Lawsky in his speech. “To that point, we are considering creating a special type of transitional BitLicense which would allow certain small businesses and startups to operate within a more flexible framework for a set period of time, during which time tailored examinations would be conducted.”

BitLicense, which is scheduled to release in January next year, is hopeful to see more changes in its framework as another commenting period is expected after the release of the next draft.

What are your opinions of transitional BitLicense? Do comment below.