Couldn’t agree more with Capaccioli.
The regulation is not removing uncertainty from the market, it is instead increasing it. The broad and all inclusive language used, at least at first sight, is incompatible with Bitcoin’s pseudo-anonymous and distributed nature.
BitLicense as-is does not protect consumers, but stifles innovation with unnecessary and costly burdens. Bitcoin is different from the rest of the financial system and requires some careful thought before regulations are put into place.
Finding the right boundaries and the right balance is a difficult task that requires meticulous and conservative attention.
The proposed NYDFS BitLicense could impact on non-US business:
Section 200.2 Definitions
(g) New York Resident means any Person that resides, is located, has a place of business, or is conducting business in New York
(n) Virtual Currency Business Activity means the conduct of any one of the following types of activities involving New York or a New York Resident
Section 200.3 License
(a) License required. No Person shall, without a license obtained from the superintendent as provided in this Part, engage in any Virtual Currency Business Activity
The jointly analysis of these rules can impact on non-US business. The Bitcoin ecosystem consists in high pseudoanonimity and interpreting in letteral way, every business that involves NY residents, even if run abroad with no contact with NY State, requires BitLicense or find a way to avoid NY residents.
For exemple: an european exchanger could block all New York’s IP addresses, but…
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