The New York State Department of Financial Services (NYDFS) wants to make it simpler for cryptocurrency firms to obtain a much-coveted BitLicense, Reuters report.
The regulator recently published a proposed framework that outlines the process of conditional licensing.
A conditional license
The proposal states that cryptocurrency startups or already established companies could be able to legally operate in New York in collaboration with one of the recipients of a BitLicense:
The proposed conditional licensing framework is intended to allow a new entrant to work in collaboration with an authorized BitLicensee or a holder of a New York limited purpose trust charter (each, a “VC Entity”) during the term of the conditional BitLicense (a “Conditional License,” and the holder of such a license, a “Conditional Licensee”).
This also applies to other New York-based businesses that want to dabble with digital assets.
Once approved, an applicant can engage in any cryptocurrency-related entrepreneurial activity and apply for a full BitLicense later.
The NYDFS is seeking public comment on the new initiative by Aug. 10.
An exclusive club
Notably, the move coincided with a five-year anniversary of the regulatory framework that is considered to be the golden standard within the crypto industry.
The extremely cumbersome process of getting a BitLicense can take up to one year.
That explains why only 25 cryptocurrency companies have been so far given the green light to operate in New York as licensed entities
Vladislav Sopov