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What Would a BitLicense Look Like?

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Last November, the New York State Department of Financial Services issued a notice communicating its intent to hold a hearing on virtual currencies, with the purposes of reviewing “the interconnection between money transmission regulations and virtual currencies,” and considering “the potential issuance of a BitLicense specific to virtual currency transactions and activities.” The hearings are scheduled to be held on January 28 and 29 in downtown Manhattan.

I thought it would be useful to start a conversation on this topic by offering my experience-based perspective on the New York state licensing and examination process, and by posing a few trigger questions.

By way of background, the reason virtual currencies, New York and licensing appear in the same sentence is that in March of 2013, the United States federal government issued guidance equating virtual currency exchangers and administrators with money transmitters, a category of non-depository financial institution that in the United States, to the chagrin of crypto-preneurs worldwide, is subject to licensure by individual states.  Licensing is intended to subject industry participants to a supervisory authority primarily for purposes of Continue reading →

2014-01-01 Crypto-Timeline

Here is a log with relevant legal, regulatory, law enforcement and business risk milestones in crypto-currencies’ race to maturity with links to trusted sources.

The  Key December 2013 Crypto-Events were:

• 12/1/2013 – Dutch Rabobank blocked bitcoin for ‘ethical reasons’
• 12/2/2013 – 96,000 BTC are stolen and angry users chase thief around the Internet
• 12/3/2013 – The Dutch Central Bank warns about virtual currency risks
• 12/5/2013 – China bans its banks from handling Bitcoin
• 12/5/2013 – French central bank warns over Bitcoin risks
• 12/5/2013 – Bitcoin valued at $1,300 by Bank of America analysts
• 12/8/2013 – India’s central bank expresses concern about Bitcoin’s risks
• 12/9/2013 – Swiss parliament requests legal clarity on Bitcoin, including declaring it a currency
• 12/9/2013 – JPMorgan Chase building Bitcoin-killer
• 12/10/2013 – Apple blocks bitcoin payments on secure messaging app Gliph Continue reading →