NYS Department of Financial Services (DFS) Publishes All BitLicense Comments; California Considers Regulation
On December 3, the New York State Department of Financial Services (DFS) published all 3,746 public comments it received on the proposed “BitLicense” regulatory framework that would cover businesses participating in “virtual currency business activities.” Through his Twitter account announcing the comments, DFS Superintendent Benjamin Lawsky stated that a revised BitLicense proposal should be produced later in the month.
Among the comments received by DFS were those from Manhattan District Attorney Cyrus Vance Jr. (expressing concern that an entity with a BitLicense would not be subject to New York State Banking Law, and thereby the penalties for violation of Banking Law), financial services provider Western Union (providing comment on anti-money laundering requirements and the application of the BitLicense to entities already licensed as money transmitters) and national retailers Walmart and Amazon (expressing concern that the BitLicense could be read broadly to cover gift card, electronic credit and other more traditional retail product offerings). All comments received in the public comment period may be retrieved at the Department of Financial Services website.
On December 4, a California Business Oversight Department spokesman told Businessweekthat the department believes that California could regulate virtual currency business under current state law, with consumer protection as the core concern. The text of the relatedBusinessweek article is available here.