The New York Department of Financial Services (NYDFS) has acknowledged the possibility that its BitLicense may be reviewed and adapted to better fit the changing cryptocurrency industry. As NYDFS Superintendent Linda Lacewell said, it is a “good time to take a look, a responsible look and see how our regime is fitting the current market.” She didn’t reveal the details of the upcoming review or when it would be completed.
BitLicense, which was implemented in 2015, requires all companies engaged in cryptocurrency transactions with New Yorkers to be licensed under state law, even if they are based outside New York. The license has been widely criticized by the crypto community for its long approval times, the complicated process a company has to go through to obtain it and because it has forced companies like Kraken to restrict New York customers from using their services. So far, only 22 companies have managed to get BitLicense, while many more have been rejected. In April 2019, NYDFS rejected the application of Bittrex, a Seattle-based crypto exchange.
Now, Linda Lacewell has claimed that the regulator has been reviewing the BitLicense to find out if there are any adjustments or improvements they can make to it, and that they are open to comments from industry participants. However, she asked the community not to get too excited, as the existing regulations “work well”.