NYDFS Notifies the Bitcoin Foundation It’s Holding Back the Release of Extra Info


NYDFS Notifies the Bitcoin Foundation It’s Holding Back the Release of Extra Info

The NYDFS or the New York Department of Financial Services has notified the Bitcoin Foundation that it will not be releasing the extra information which was demanded by the Foundation, recently. The organization says that it may take time and may be made available by December of this year.

Earlier, NYDFS had agreed to release undisclosed data, which was gathered in the research stage of its Bitcoin regulation venture. The organization had then said that it would make everything available within 20 days so that the public could analyze this data and consider it when submitting their formal comments on the BitLicense proposal.

Now, it looks like the BitLicense issue is going to continue for the next couple of months thanks to adamant views from NYDFS which has been criticized a lot by the stakeholders in the Bitcoin ecosystem. In a grand display of what could either be bureaucratic arrogance or ineptitude, the decision by the NYDFS has been criticized by many people in Bitcoin industry.

Several Bitcoin exchanges have shown their concern on the BitLicense. The Bitcoin Foundation had requested the NYDFS to give additional time to the stakeholders in the industry to think about the impact of the BitLicense, this was though accepted, and the latest decision not to share information with the industry is being considered a high-handed approach by the NYDFS.

The NYDFS says that the additional information will not be available for another 120 days, meaning that the public will not have access to it until December. It has surprised the Bitcoin Foundation and other pro-regulation groups as well. These people have been working hard towards developing an understanding that strikes balance between Bitcoin and regulation.

High-Handed Approach from the NYDFS

Critics claim that this announcement serves as further confirmation of belief that asking governments for reasonable Bitcoin regulation is farcical and it will be disappointing to expect anything like that from it. It looks; the BitLicense is a sort of Ping-Pong game between the Bitcoin Foundation and the New York Department of Financial Services.

The two organizations have been wrestling for quite some time now. Whereas the Bitcoin Foundation favors reasonable regulation on Bitcoin, the NYDFS is hell bent to put strict restrictions on Bitcoin transactions. A lot of issues regarding the anonymity which is a cardinal part of Bitcoin are a major concern for the Bitcoin Foundation.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com