On June 3, 2015, the New York Department of Financial Services (“NYDFS”) issued a final rule regarding its “BitLicense” regulatory regime (“Final Rule”). The Final Rule follows an initial proposal from July 2014 and a revised proposal from February 2015 (“Revised Proposal”).
At a high level, the Final Rule requires licensing for any person that engages in “Virtual Currency Business Activity,” as defined in the Final Rule, and subjects licensees to extensive compliance obligations, capital requirements, examination, and approval requirements, among other things. The Final Rule also provides for a “conditional license” designed to reduce regulatory burden on startups and small businesses engaged in Virtual Currency Business Activities.
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