Bitcoin Public Policy Associations Respond to the Final BitLicense Release

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The final version of the BitLicense was formally announced by New York Department of Financial Services Superintendent Ben Lawsky yesterday, and the bitcoin community has had a bit of time to take a look at the new regulations and share their opinions on Reddit, Twitter, and every other form of social media. Although the general view of the BitLicense from the bitcoin community has been rather negative over the past year, some individuals have noted that the final version of the regulatory action seems to be an improvement over earlier drafts. Having said that, the bitcoin-focused organizations that talk with lawmakers and regulators on a regular basis did not seem impressed by the new rules that have come out of New York.

Also Read: Chamber of Digital Commerce Launches New Site, Announces Advisory Board

Chamber of Digital Commerce sees room for improvement

In a statement shared with Inside Bitcoins via email, Chamber of Digital Commerce President Perianne Boring seemed concerned with the current regulatory environment surrounding bitcoin and other digital currency applications. Boring wrote:

“New York’s final BitLicense regulations are not perfect. The most concerning is that there is not a clear on-ramp for start-ups and small businesses. And we can expect that other states will use BitLicense as a guideline in putting forward their own regs.”

In addition to worrying about the effect New York’s BitLicense could have on other jurisdictions, Boring also called for more individuals and organizations to get involved in the regulatory conversation:

“It is imperative that the industry’s voice is heard in discussions among policymakers to ensure what ultimately becomes law does not impede innovation. It is going to require the participation from all areas of the digital asset community (companies, individuals, investors, universities and other advocacy organizations) to put together a legal framework that best serves the ecosystem – one that fosters innovation, jobs and investment. Without proper engagement we risk a patchwork of inconsistencies and friction between local, state, federal and international laws.”

Boring also noted that the Chamber of Digital Commerce is still reviewing the regulations and they will provide more in-depth analysis at their next membership meeting on June 16th.

Summary of bitcoin community’s reaction to the final BitLicense: “meh” #honeybadger — Barry Silbert (@barrysilbert) June 3, 2015

Coin Center: New York BitLicense falls short

According to a blog post released in the hours after the official BitLicense announcement, Coin Center Executive Director Jerry Brito has mixed feelings on the final version of the new rules for digital currencies. On the one hand, Brito admitted that “the language we see here is improved from the original proposal.” However, he went on to say:

“Yet the final BitLicense is far from perfect. Despite the changes to anti-money laundering requirements that the superintendent cited in his speech, the final Bitlicense still creates an unprecedented and discriminatory state-level AML reporting obligation. The new language is vague and unclear about how compliance with federal regulations will exempt a BitLicensee from those state-level obligations. My question is, if you register with FinCEN, do you have AML obligations to New York State?”

Much like Chamber of Digital Commerce President Perianne Boring, Brito seemed concerned about other states following the bad example that has been set by the State of New York. He added, “We are working with them to ensure they do not repeat the mistakes made here.” Coin Center’s Peter Van Valkenburgh and Jerry Brito have also published their own regulatory framework that they’d like to see state regulators use as a guide when drafting their own digital currency rules.

Bitcoin Foundation Executive Director Bruce Fenton is not pleased

Although the Bitcoin Foundation is no longer involved with public policy related to bitcoin, the non-profit organization’s executive director, Bruce Fenton, still let his voice be heard on Reddit. In response to one Redditor who noted, “[The] application fee is only $5,000,” Fenton commented:

Fenton’s main gripe with the BitLicense seems to be related to his contention that “someone could be prosecuted for violations of BitLicense with no victim.” Perhaps these views should come as no surprise when factoring in Fenton’s political beliefs. Of course, it should again be noted that the Bitcoin Foundation is currently focused on Bitcoin Core development rather than politics or regulations.

The main thing to watch now is to see if other jurisdictions around the world decide to follow New York’s lead on digital currency regulations. The Chamber of Digital Commerce and Coin Center have both pledged to work closely with lawmakers and regulators to make sure that the digital currency community’s desires are at least part of the conversation.

Featured image via Sam Valadi.

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