New York State Regulator to Make It Easier for Cryptocurrency Businesses

A new report informed that the New York State Department of Financial Services (NYDFS) had proposed new licensing rules that could ultimately facilitate companies to engage in any cryptocurrency business in the state.

NYDFS to Ease Crypto Business

The New York Post reported earlier today that New York’s regulator is asking for the public’s opinion about the proposed legislation, which could ease the regulations on cryptocurrency-related business operations. Locals have until August 10th to provide their input on the matter.

The new initiative will aim to simplify operating with the state’s “BitLicense.” Unveiled in 2015, BitLicense is mandatory for every cryptocurrency company working in New York that receives, stores, issues, or sends digital currencies.

In the past five years, only 25 firms have managed to receive the license. Some of the casted out business had spoken against the stringent requirements, which could take years to obtain on some occasions.

Should the newly proposed framework be accepted, it would allow businesses aspiring to engage in digital currency endeavors in New York to obtain a so-called conditional license. By using it, those firms would be able to collaborate with fully licensed companies, the report added.

Another proposal coming from the state’s regulator involves the offering and usage of new coins. Licensees would choose from a set of pre-approved coins provided by the NYFDS, and then they would be able to self-certify the usage without having to receive additional approval.

Regulations in Spain Getting Tighter

While the NYFDS is attempting to ease cryptocurrency businesses, Spain authorities recently published an amendment requiring digital currency service providers to register with the Bank of Spain. The nation is trying to comply with the Fifth Anti-Money Laundering Directive (5AMLD) from the European Union.

The Iberian country will require national regulation and registration from all cryptocurrency exchanges, e-wallet providers, and organizations in custody of customers’ private keys. Those entities have nine months to register their services with the Bank of Spain after enacting the law.

“The Draft Law advances in the reinforcement of the money laundering and terrorist financing control system, incorporating the new community provisions and including additional improvements in the current regulation to increase the effectiveness of prevention mechanisms.” – reads the amendment.