ForexMinute.com – BitLicense is indeed capable of paralyzing the cryptocurrency economy, at least within New York. The controversial proposal, drafted first by the state’s finance department superintendent Benjamin Lawsky, has failed to impress the digital currency community, treating them “literally” like criminals.
BitPay, one of the most renowned Bitcoin payment processors within the community, recently posted an open-letter to Benjamin Lawsky. In the paper, the company’s Chief Compliance Officer, Tim Byun, requested the superintendent to consider eliminating the needs for names, account numbers, physical address for each transaction. “Merchants on Broadway do not collect such information for “each transaction” whether via cash for a hotdog or via debit cards to attend a show,” he added while explaining Benjamin the prejudiced nature of BitLicense.
A similar, but satirical instance was also given by Electronic Frontier Foundation. The San Francisco-based activist group cited a coffee customer as an example, who is liable to submit his personal information, like name, address, bank records, etc. just to buy a cup of coffee via cash or credit card.
Circle also didn’t shy away from submitting an open-letter to the New York State Department of Financial Services (NYDFS). The Bitcoin-centered company generously praised the government for giving the cryptocurrency community a chance to present their views, but also termed BitLicense as a “critical” law that is proposed without much knowledge about Bitcoin and its functionalities.
The company’s Chief Compliance Officer, John Beccia, said:
“Circle believes there are numerous areas in the Proposed Rule, which could negatively impact consumers and business that wish to utilize digital currencies. There are several requirements that are so burdensome (and in some cases nearly impossible to comply with) that if the Proposed Rule were to be enacted in its current form, Circle would have no choice but to exclude New York residents from its service.”
With growing pressure from the digital currency sector, we are hopeful for the amendments in BitLicense. NYDFS can indeed take inspiration from the few US states that are providing some really favorable regulatory framework for Bitcoin businesses and users. Texas, New Mexico, California, Colorado are some among them.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org