Today, it was announced that the BitLicense had been granted to the New York Digital Investment Group, which is the 14th company in history to receive it. While the original aim of the BitLicense was the provide a clear regulatory framework for Crypto companies to operate in the state of New York, it now exists as a sort of example that other states could choose to follow.
The central question is: will they? The BitLicense’s history has not been without controversy, including companies like Shapeshift choosing to abandon the state of New York altogether. Given this, it can be argued that it is not exactly the ideal compromise to foster innovation while satisfying regulators at the same time.
Despite this, the framework persists.
According to Coindesk, after granting this particular license, the New York Department of Financial Services was actually even quoted as calling this set of regulations, ideal. In effect, it appears that the state’s government believes the BitLicense can live on for the long term.
Furthermore, what is also striking, beyond this opinion, is that the NYDIG is reportedly the first firm of its kind to be approved by New York regulators. Basically, it seems they will act as a regulated Crypto exchange and trust management service, at the same time. Their list of supported assets is almost identical to Coinbase’s, except that they will not support ZRX or ETC and they will support XRP. What is less clear is whether they will only serve large institutional clients, or individual customers as well.
Even though regulatory acceptance of a Crypto business like this one is arguably always a good thing, there will have to come a time when regulators create some sort of framework at the national level that they are comfortable with. It might end up like the BitLicense and it might not at the same time, but it has to happen for Crypto to go mainstream.
All Crypto businesses need to be able to operate in the United States without fear of regulatory backlash. Related to this, it should be made clear that according to a past article from Coindesk, New York regulators are not opposed to helping this process along. In the end, for a national regulatory framework for the Blockchain industry to happen, United States regulatory agencies will need to come together, more than they ever have before.
By: BGN Editorial Staff