BitLicense: Bitcoin developer and Miner are not affected

Developers, miner and individuals are not "BitLicense " from the upcoming in the US state of New York to be affected in general, according to the head of the New York Department of Financial Affairs (NYDFS) Benjamin Lawsky.

In a speech at the Benjamin N Cardozo School of Law in New York Lawsky made it clear that many individuals and companies that operate in the state of New York in the Bitcoin world, no regulatory approval or a "BitLicense" (Bitcoin License ).

"We regulate financial intermediaries. We do not regulate software development, "said Lawsky, adding," To make this clear, we are not targeting software or software development. If a software developer, Eg developing a wallet and providing it to people for private use, does not require bit-lincense. Those who are innovative and develop new platforms for digital currencies will not need a BitLicense. "

Lawsky believes that the banking sector and the technology sector are slowly" colliding ", which poses new challenges for regulation.

A positive note by the way. Lawsky said the NYDFS quickly noticed the great potential of the blockchain: "When we first began to take a close look at Bitcoin, we were able to see the power behind the technology behind Bitcoin. "The technology has the potential to drastically reduce the transfer fees," said Lawsky. The residents of New York pay 8-9% for foreign transfers, but with Bitcoin these fees could be reduced to only 1%, Lawsky emphasized. In addition, the digital currencies no one has to announce his credit card data and the transactions are done in minutes, he added.

Lawsky Explains the Provisions The NYDFS has begun to develop the first draft of the BitLicense after the fall of the Bitcoin stock exchange, Mt. Gox.

The comment period of the original draft was extended upon request by leading members of the Bitcoin branch.The revised version took account of the comments. After the release of the new version, there will be another comment period.

Lawsky also made it clear that the NYDFS will never require more than one license for digital currencies, and in most cases, no money-sender license will be needed. Just as the developers, no individuals will be affected by BitLicense.

Lawsky also commented on some criticisms of the first draft A criticism was, for example, Such as the fact that banks do not have to meet the new regulatory framework at all, but that is only true if they do not work with digital currencies, Lawsky said.

Lawsky also said something about the attitude towards bitcoin mining: Mining will not be regulated per se. However, if a mineral is used in other areas, Such as hosting wallets or exchange exchanges, a BitLicense may be due for these activities. For the mine itself no license will be required. "In order to thrive new startups, the NYDFS will also try to keep compliance costs as low as possible. In his speech, Lawsky also admitted that companies could decide whether to work with companies from unregulated countries to circumvent the regulation. According to Lawsky, the company can ultimately sacrifice its competitiveness. He said: "Our hope is that the company, or at least some of the companies will understand that effective regulation will encourage the confidence of the people and investors who are going to be active in the industry.

This would create a circle of acceptance of digital currencies. "It is possible new ways to go, to stick to the rules and to generate profits," said Lawsky.

English original version of Nermin Hajdarbegovic via CoinDesk

Image Source: bbc. co. uk