Law & Order in Cryptocurrency's Wild West
New York attorney Eric Biderman was quoted in an article by Reactions Magazine on the potential for a cryptocurrency insurance market in New York State. Although “the tenuous state of cryptocurrencies as a legitimate asset class…has made providing insurance for the fiat currency difficult,” New York State is used to being at the forefront of regulation. The article explains that while New York State has sweeping cyber regulations which go into full effect next year, the state has also enacted regulations that created a business license for virtual currency firms in 2015.
However, Mr. Biderman thinks these regulations may be too strict for firms that fall under it. “Currently, the DFS does have regulations for virtual currencies. It requires a Bitlicense to engage in virtual currency business activity, that means any conduct involving receiving or transmitting virtual currency with some exceptions. However, these New York regulations have been out for almost three years, and fewer than 10 Bitlicenses have been issued. People in the industry have found it pretty restrictive and prohibitive in terms of requirements for obtaining these licenses.”
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