NYDFS Superintendent Was Wrong — Bitlicense Severely Damaged Bitcoin Businesses

NYDFS Superintendent Maria Vullo Says Regulatory Structure Towards Cryptocurrencies Has Attracted Greater Fascination
NYDFS Superintendent Wrong -- Bitlicense Damaged Bitcoin BusinessesAttendees at the Conference of State Bank Supervisors (CSBS) spring meeting were advised that the disputed Bitlicense stimulated the cryptocurrency industry. The NYDFS Superintendent Karen Vullo told the audience at the CSBS that customer protection is considered seriously in New You are able to and "cybersecurity and AML standards are respected. inches Vullo spoke of "fatal flaws" during the scandalous Mt Gox hack, and the following bankruptcy often in her speech; suggesting there is a significant need for regulation in 2014.

"Strong standards are very important to our markets and consumers, as well as the businesses that want to be best lawn mowers of class in providing financial, " The NYDFS Superintendent explains during her presentation.

More Than Fifteen Corporations Vacate NY While Sole Six Very Large Cryptocurrency Businesses Associated with Lower
Vullo also spoke of Japan's major bitcoin exchange, the Tokyo-based Bitflyer, a firm that was lately approved by the NYDFS and granted the Bitlicense in New York. Even so contrary to Vullo's beneficial talk about how precisely regulation has boosted the greater interest towards cryptocurrencies she don't exactly make clear just how badly it afflicted customers and small businesses.

Nevertheless, many people believe the 44-page New york city law has caused a substantial "damage" to the financial technology and cryptocurrency industry. Further, there are only six cryptocurrency businesses that are accredited by the state of Nyc including Coinbase, Group of friends, and XRPII. Bitflyer was only approved this previous November, and the two other NY accredited companies Gemini Trust and Itbit were granted bank events.

Only very large businesses have been able to handle the fees associated with the Bitlicense and the large amounts of customer data bigger businesses are willing to talk about. Some companies like Shapeshift decided not to stay around New York for "moral and ethical" reasons. Prior to the Bitlicense being approved by congress, companies started to get out of the state and after it was authorized cryptocurrency businesses left in legions. A total of 20 digital currency companies left side New York including Vaultoro, Shapeshift, Paxful, Poloniex, Bitfinex, Kraken, and more.

Every for Strengthening the Express System
Moreover, small business owners not as large as the likes of Coinbase, Itbit, Gemini, and others have definitely lamented about having issues with the Bitlicense. For over two years Theo Chino, a tiny cryptocurrency company owner, fought against the New York rules all the way to the high courts. Chino said the Bitlicense brought on his small procedure to finally fail, and asserted for limited discovery on the economical nature of bitcoin. This means Bill Lawsky and his other bureaucrats didn't understand bitcoin in 2015 and forced what the law states too hastily and Chino says the insurance plan damaged his bitcoin product owner solution business structure.

NYDFS Superintendent Wrong -- Bitlicense Ruined Bitcoin Businesses
Theo Chino says the Bitlicense depressed his small business in New York.
Bitcoin care groups like Coin Middle criticized the Bitlicense, and the Bitcoin Foundation also spoke out against the legislation. A site called "Please Protect Consumers" was launched due to the Bitlicense that claims consumers are at risk as the law requires strict customer monitoring.

Still, Maria Vullo claims the Bitlicense produced continued dialogue and "positive results, further strengthening the state of hawaii system. " Its safe to say even those who disagree with New York's cryptocurrency regulation, the Superintendent's last statement about 'strengthening the state' is quite true. However, Vullo's facts bolstering the idea that the Bitlicense helped the cryptocurrency industry is very misleading in comparison to what really happened.