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