Bitcoin business got another boost as the New York State Department of Financial Services (NYDFS) has officially informed about its adoption of BitLicense. The New York state will be now the first US state to formally introduce license for a bitcoin business, officially accepting digital currencies.
Now the publication in the New York State Register will have a 45-day period (until 8th of August) when all the legal entities and individuals, offering their services via bitcoin of any other digital currencies to New York residents, will have to apply for a BitLicense.
With this bitcoin license come also a formal non-refundable fee for BitLicense application of $5,000, while NYDFS may ask for further clarification of managing individuals, financial history or any other business plans, etc.
According to BitLicense regulation, any person or company is considered as compliant if it has applied for the bitcoin license until the decision on its application is made. In case of denial, the subject has to stop any activities related to those specified in application.
Moreover, any omiting of the BitLicense application will not be pardoned and the subject faces sanction possibility, according to the provisions: “Any person engaged in virtual currency business activity that fails to submit an application for a license within 45 days of the effective date of this regulation shall be deemed to be conducting unlicensed virtual currency business activity.”
Nevertheless, sanctions are still not specified or clarified, so this issue remains open but it is hard to imagine that such tolerant environment will stay for longer and the NYDFS will come with such provisions as well for sure.
It is expected that the NYDFS will provide an update on bitcoin’s BitLicense issue on its official website and also about a start of the 45-day grace period.
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