TL; DR Breakdown
- BitLicense firms to pay assessment fee in New York
- Companies in the bracket will pay tens of thousands
- DFS to use the fees to enhance its operations
New York has ordered crypto exchanges that have been awarded the BitLicense in the past to start paying assessment fees. With this new measure, the government would drive up the cost of floating a business in the sector. The assessment fee will also ensure that the firms follow laid-down rules and regulations. This new rule was one of the few laws granted a seal of approval during the last budget in New York.
BitLicense companies could pay tens of thousands annually
According to the bill signed into law, the governor of the state, Kathy Hochul, gave the Department of Financial Service the full right to carry out the said activities. This means that the body which was just created will ensure that all investments in the crypto sector with the BitLicense pay this fee annually. In her statement, the body’s executive, Adrienne Harris, positioned this new development to ensure that dealers in crypto businesses fall in line with other service providers in other sectors.
In her examples, she earmarked sectors like insurance and banking sectors. Harris noted that the state was the first to award a BitLicense that guides crypto firms’ activities across the state. She also mentioned that the move has led to many crypto startups entering the state to set up their businesses.
DFS will use the fees to enhance its operations
Notably, New York was the first state to announce the BitLicense award, where companies in the crypto sector would get an operation license. Presently, the DFS charges companies in the sector a sum of $5,000 upon registration. However, the said company must fall in line with specific directives to be granted the license. Although a figure has not been communicated in this nee directive, there are signs that these investments could pay about tens of thousands annually.
The body mentioned that the payment would be channeled towards operating costs in their daily compliance activities. It will also help them bolster their staff strength to aid their operations across the state. Notably, only companies that deal directly with crypto and have been granted BitLicense will be eligible to pay the fees. In the last few weeks, Bill Ackerman has called out the policymakers in the country over a failing regulatory oversight that could send him packing from the states.
The billionaire called on the state government to ensure that the unclear nature of crypto legislation was tackled. The Mayor of the state, Eric Adams, has also been a strong backer of digital assets after taking his first salary in the leading digital asset. However, there is a consensus that creating clarity in the crypto sector is down to several parties other than the Mayor.