New York State Proposes Sweeping Bitcoin Regulations

CommanderFrank

Cat Can't Scratch It
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The recent wave of acceptance for Bitcoin seems to have stopped at the door of the New York Department of Financial Services. The NYDFS has issued new proposed regulations regarding the operation and use of Bitcoin in business transactions in the state of New York..

“We have sought to strike an appropriate balance that helps protect consumers and root out illegal activity—without stifling beneficial innovation,”
 
all they see is a new source of revenue... that's it. And by trying to get their fingers in the pie, they are just going to hurt the overall economy for bitcoin in that area.

They do know it's a global currency, not able to be regulated by anyone at it's most basic levels.
 
they just to make sure they can get taxes out of every transaction in NYS. I can wait till I can move out of this pathetic excuse of a state.
 
Watch every single Bitcoin entity exit the state of New York.

Remember, this is the state that brought us the first-ever ban on large capacity soda drinks. :rolleyes:
 
all they see is a new source of revenue... that's it. And by trying to get their fingers in the pie, they are just going to hurt the overall economy for bitcoin in that area.

They do know it's a global currency, not able to be regulated by anyone at it's most basic levels.
People want to live there, they will be regulated.
 
did any of you actually bother to read the document before commenting?

these regulations are for obtaining a bitlicense in order to operate a virtual currency exchange in the state of new york.

the proposed regulations are not about stymieing the growth of bitcoin. they are embracing bitcoin with a regulatory framework that will finally allow banks and other large financial institutions to participate and trade in bitcoin.

nasdaq is attempting to become one of the first regulated bitcoin exchanges http://nypost.com/2014/06/25/its-david-vs-goliath-in-race-to-launch-nys-first-regulated-bitcoin-exchange/

the amount of money invested in bitcoin to date is chump change compared to the real money that will finally enter the game in the state of new york.
 
bitlicense owners can't hold earnings in bitcoin...

45 days for existing businesses to comply with the new regulations and register with the state.
Background check required for all employees/founders.
Fingerprints of the above submitted to FBI.
Requires a bond held with New York State.
Requires written approval of all new business activities/offerings.
Requires that you keep 10 years of records of business transactions.
Virtual currency accounts not active for 5 years must be handed over to the state.
Retained earnings and profits of the company can ONLY be invested in US dollars: Federal bonds, state bonds, or money market funds.
Mandatory reviews every 2 years: financial condition, safety/soundness of business, policies...
Quarterly financial statements required within 45 days of the closing of each quarter.
Financial statements must be audited, use GAAP.
Typical AML/KYC requirements.
Cybersecurity requirement: requires security officer, security plan, audits, backup plan.
In marketing/advertising, you must include "Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services."
Must disclose a long list of material risks with dealing with virtual currency: e.g., "not legal tender, backed by any government"
 
Watch every single Bitcoin entity exit the state of New York.

Remember, this is the state that brought us the first-ever ban on large capacity soda drinks. :rolleyes:
That was the City of New York not the State of New York. I know it's hard but they are actually separate governments. By the way the State of New York removed the City of New York's soda ban under the auspice that the City didn't have that sort of regulating power.
 
the amount of money invested in bitcoin to date is chump change compared to the real money that will finally enter the game in the state of new york.

I doubt that will be the case. A new trading platform is not enough to attract investors. Right now Bitcoin is too thinly traded to be of interest to serious investors. In order for the trade volume and the price to show some serious movement, Bitcoin would need to experience a significant increase in mainstream adoption, which has been completely lacking so far. Yes, there are now more ways to spend Bitcoin, but there is still no incentive for average consumer. The average daily volume has remained mostly unchanged since over a year ago. The number of people using Bitcoin has actually decreased in recent months. To an investor, the charts do not paint a pretty picture - as if Bitcoin has already peaked and is currently in the stagnation stage. Even from a grossly overvalued company such as Twitter, some revenue growth is expected. There always needs to be something concrete to justify the valuation.
 
Yeah, you don't have to travel too far up into upstate New York before it gets to be a completely different world....Not saying Albany is any less corrupt however!

 
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