The New York State Department of Financial Services (NYDFS) has officially adopted the BitLicense following the framework’s publication in the New York State Register.
Now in effect, the BitLicense makes New York the first US state to formally launch a custom-made regulatory approach to bitcoin and digital currencies.
The publication in the register also kicks off a 45-day grace period, during which time companies and individuals that offer digital currency services to New York residents must apply for a BitLicense. The application deadline is 8th August.
Obtaining the BitLicense means paying a $5,000 non-refundable application fee, with the possibility of additional application costs as determined by the NYDFS, and submitting details about those running the company, their financial and legal histories and their plans for running a digital currency business.
The final version of the BitLicense states that once a business or individual has applied, they are considered compliant until a determination on their application is made. If denied, they must immediately stop doing business in New York.
The text suggests that any entity that doesn’t apply faces possible sanction, noting:
“Any person engaged in virtual currency business activity that fails to submit an application for a license within 45 days of the effective date of this regulation shall be deemed to be conducting unlicensed virtual currency business activity.”
Yet, the BitLicense text itself is silent on the issue of how non-compliant businesses might be cited or penalized. When reached for clarity, a representative for the NYDFS declined to comment on how enforcement actions may be taken.
The NYDFS is expected to post an update on its official website regarding the official launch of the BitLicense and the commencement of the 45-day grace period.
This article has been updated with the application deadline.
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