Bitcoin regulation will always remain a very touchy subject among industry experts. Although an official guideline for service providers helps legitimize cryptocurrency as a whole, there are some negative side effects as well. A group of Bitcoin enthusiasts now want to abolish the BitLicense altogether.
Can we Abolish the BitLicense?
It is safe to say the state of New York is not particularly cryptocurrency-friendly as of right now. This story dates back to the NYDFS introducing the BitLicense requirement for all Bitcoin service providers many years ago. Even though some companies successfully obtained their BitLicenses – for a hefty fee, mind you – the vast majority of cryptocurrency service providers are no longer active in the Empire State.
The exodus of cryptocurrency services from New York State has been well-documented in the past. There seems to be a consensus that this particular legal requirement is the exact opposite of how governments and officials should look at this nascent industry. Its hefty financial cost is just one of the concerns cryptocurrency companies have with the BitLicense. Filing an application is no guarantee of success, and the initial fee is non-refundable.
Moreover, it seems there are a lot of potentially unnecessary legal requirements for companies attempting to obtain a BitLicense. In the early days, it was expected that the legal fees alone would add up to $100,000 or more just to get the paperwork in order. It is not a great way to entice service providers to set up shop in a state which seems as anti-cryptocurrency as one can be.
Even though things have been relatively quiet surrounding BitLicense for some time now, that will be changing very soon. A new Meetup has been organized to gather people looking to abolish the BitLicense requirement altogether. A press conference will be organized on the city hall steps in New York City, even though it will not necessarily get a lot of attention. With just 6 people having signed up for this “demonstration” at the time of writing, it will be very difficult to make one’s voice be heard.
At the same time, it is evident the BitLicense requirement is not working in favor of New York State whatsoever. The cryptocurrency industry is thriving, and this part of the United States is being left behind due to a seemingly unnecessary requirement. While the BitLicense also legalizes cryptocurrency in a way, there are only around a dozen companies which have actually received a license since it was officially introduced. A revision of this framework is certainly in order, as it simply forces companies and service providers to seek business elsewhere.
The “Abolish the BitLicense” movement is pretty interesting to keep an eye on, though. It does show there is a genuine dislike for this regulatory requirement. Whether or not any of the state’s officials will decide to do something about it is a different matter altogether. All one can do is try to stir the pot and see what comes of it. A lot of cryptocurrency enthusiasts would not mind seeing this requirement disappear altogether. Only time will tell if that is even a remote possibility.