Crypto companies and businesses in New York have lamented on several occasions that obtaining the state’s BitLicense takes longer processes and time. However, the state’s financial regulator is heeding to those complaints by planning a whole new licensing approach for these companies.
Crypto companies to operate in NY with a conditional license
Following a report on Wednesday, The New York State Department of Financial Services (NYDFS) put forward a new licensing rule to issue conditional licenses to crypto companies. Ultimately, this would allow entities, looking to launch services to New York, work with other licensed companies, before the BitLicense per se.
The development stems from the public complaints, particularly from crypto companies, about the hurdles in getting approved for BitLicense. Some of these complaints mentioned that acquiring the BitLicense should be considered as a years-long process. This stunts the cryptocurrency development in New York.
For this reason, the regulator is looking to make the process of obtaining BitLicense more convenient by proposing the so-called conditional license rule. Perhaps, this would enable crypto companies to operate in the states easily, while still attracting and growing the cryptocurrency sector.
New York’s BitLicense
In addition to the new licensing approach, the New York regulator also planned to lower the processes of offering and using new cryptocurrencies in the state. The report reads:
The regulator will provide a list of pre-approved coins from which licensees can select and then self-certify they are using without having to get additional approval.
Meanwhile, the locals are urged to provide their input about the latest licensing approach by August 10.
BitLicense was reportedly introduced five years ago by the New York state regulator. This happened when regulators around the world were skeptical about the concept of cryptocurrencies. So far, only 25 of these licenses have been awarded to crypto companies.