Bitcoin Global News (BGN)
November 15, 2018 -- ADVFN Crypto NewsWire -- 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