The New York State Department of Financial Services Superintendent (NYDFS) said the cryptocurrency industry has responded positively to changes made to BitLicense.
NYDFS Superintendent Linda Lacewell said that some in the cryptocurrency industry may “curse” the regulator, but new changes to BitLicense were pretty well received. She stated this in the framework of the Global Leaders Webinar Series under the auspices of Global Digital Finance (GDF) in collaboration with the Global Blockchain Business Council.
“The reaction was very positive and even more so,” she said.
Laswell is not surprised by the industry’s reaction to the state’s regulatory update because the regulator worked on changes to the licensing regime with industry players — both licensed and unlicensed — and experts to understand its weaknesses.
“We even had several licensees who told us that they were very interested in obtaining additional licensing to work with their partners in the cryptocurrency industry,” said Laswell.
Laswell said that when she took over as NYDFS Superintendent last year, she immediately appointed additional staff to work with pending BitLicense applications. This has contributed to the successful licensing of several companies.
“I thought this license was five years old, and we need to take a fresh look at it,” Laswell said. “I was very aware of the criticism regarding the license and the fact that it was not universal and required large investments from companies to work in the state. We knew that we needed to clarify and explain the regulatory regime and the process of applying for a license. ”
As part of these efforts, last month, NYDFS proposed introducing a “conditional” license under which cryptocurrency companies could work with firms already holding a valid BitLicense. In December last year, it also became known that the Department was developing rules for regulating token listing as part of the first step to review the New York BitLicense license.
“When it was just the beginning, people thought it was a one-day company, a crazy idea and stuff, right? But there are responsible participants in the market. Any financial services or products can be abused, misused and turned into a bad tool, ”Laswell said.
Finally, according to Laswell, NYDFS wants innovators to be in New York and prosper.
“We want innovators to be right here in New York, which has historically been home to a large number of inventions and has always set standards not only for the rest of the country, but for the whole world,” Laswell said.