NYDFS Release Bit License Comments

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This week the New York State Department Of Financial Services (NYDFS) published the comments they received regarding the BitLicense proposal on the department’s website. The revelation was made by Ben Lawsky, the superintendent, via his Twitter’s account. 3,746 comments have been received from both individuals and corporations.

Generally speaking, most of the reviewed comments revealed unanimous opposition regarding the contents of the proposed BitLicense, despite the fact that the idea of a license for regulation of Bitcoin and other cryptocurrencies was highly endorsed by a considerable number of online businesses. Most comments described the proposal as broad in scope and extremely burdensome. The following represents a summary of the viewpoints of the most notable commentators:

Amazon

Amazon was concerned about the broad definition of virtual currency that had been introduced by the proposal, because such definition would affect some of its products such as Amazon coin and prepaid gift cards.

Western Union

Western Union’s comments spanned across a 12 page document that was signed by the company’s general counsel, who expressed concern regarding the threats imposed by cryptocurrencies on the value of currencies in the real world. In fact, Western Union considers Bitcoin a big threat that can affect its remittance business and this explains why the company asked for broadening of some rules and adopting more cautious regulations.

New York Bankers Association

The association comments were centered on exempting regulated financial institutions from the proposed regulations of the BitLicense, due to the fact that they are already governed by multiple bodies of regulations. The association also expressed its concern regarding the definition of virtual currencies, which can affect some of its products including the reward programs of credit cards.

Walmart

Just like Amazon, Walmart criticized the proposed definition of virtual currency, worried that it could affect their gift card business.

Dogecoin

Dogecoin is a cryptocurrency that is launched by a foundation that is engaged in charity. The foundation argued that the proposed license isn’t appropriate for regulating emerging technologies. The foundation believes that such license can strangle charitable work.

BTC China, Huobi and OKCoin

BTC China, Huobi and OKCoin are the three main Bitcoin exchanges in China. They submitted a single commentary that was signed by all three companies. They believed that the Bitlicense should only regulate virtual currencies that have business activities in New York. They were also concerned about record disclosure by licensee’s affiliates.

 

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What are your thoughts on the Bitlicense? Let us know in the comments.