New York Department of Financial Services Proposes First Comprehensive Regulatory Framework for Virtual Currency Businesses
On July 17, the New York State Department of Financial Services (DFS) released the draft “BitLicense,” a proposed regulatory framework to license Virtual Currency Business Activity. The proposed regulations follow DFS hearings held in January 2014 and are intended to promote consumer protection, stability and security in the operation of virtual currency exchanges, among other virtual currency businesses. The DFS regulations would apply to digital assets such as bitcoins and litecoins, but not to digital gaming units (e.g., World of Warcraft gold) or consumer rewards programs (e.g., Starbucks stars). DFS will accept comments on the proposed regulations for 45 days after its expected publication in the New York State Register edition of July 23, 2014.
A copy of the proposed regulatory framework is available here.