The New York State Department of Financial Services published comments on the proposed BitLicense this week, posting them on the department's website. Superintendent Ben Lawsky announced the release o
The New York State Department of Financial Services published comments on the proposed BitLicense this week, posting them on the department's website. Superintendent Ben Lawsky announced the release on Twitter. The submissions totaled 3,746 from individuals and companies.
The response showed a clear tension about digital currency regulation. Many online businesses backed the concept of licensing Bitcoin and other digital currencies. Yet commenters across the board rejected this particular proposal, describing it as too broad and too burdensome.
Amazon objected to the proposal's broad definition of virtual currency, concerned it would affect Amazon Coin and prepaid gift cards. Walmart raised identical concerns about its gift card business. The New York Bankers Association called for exemptions for regulated financial institutions, arguing these firms already faced extensive oversight from multiple regulatory bodies. The association also objected to how the definition of virtual currencies could affect credit card reward programs.
Western Union submitted a substantial 12-page response signed by its general counsel. The company argued that Bitcoin threatened its remittance business and the value of traditional currencies. Western Union called for broader rules and more cautious regulation.
The Dogecoin Foundation, built on charitable work, argued that the BitLicense wasn't appropriate for governing emerging technologies. The foundation warned that such a license could strangle their charitable mission.
Three major Chinese exchanges—BTC China, Huobi, and OKCoin—submitted a joint statement. They contended that the license should only apply to operators conducting business in New York. The exchanges also raised concerns about disclosure requirements for licensee affiliates.
Lawsky said revised regulations would arrive before the month ended.
