The BitLicense continues its unwanted effects
According to reports, New York issued its 18th BitLicense yesterday to a cryptocurrency brokerage department called Tagomi.
Tagomi Trading LLC is a subsidiary of Tagomi Holdings, a trading firm which started with cryptocurrency trading based on client demand from the market.
The firm was co-founded by Greg Tuscar, a former head of digital trading at Goldman Sachs Group, it’s CEO Jennifer Campbell and Marc Bhargava, who is the companies president.
The state of New York with its scepticism and restrictions on bitcoin, has been issuing BitLicense for cryptocurrency companies since 2015.
The first BitLicense went to Circle, a crypto finance company that operates the Poloniex exchange and is backed by the Goldman Sachs group. Back in 2015 companies in New York intending to deal in cryptocurrency had to apply for a BitLicenses.
This caused some companies to move to different locations in the U.S in order to start their businesses.
The NYDFS released a proposal for its BitLicense back in July of 2014 after nearly a year worth of Research and public hearings. According to reports coming from the NYDFS and AMA it received over 1,200 comments that went into making a regulated licenses framework.
Dawn of the BitLicense in the U.S
The BitLicense is also known as the Virtual Currency Business Activity License. This license is intended to have three central aims with the first being to establish regulations that prevent money laundering and secondly protect consumers.
The third is to lay out rules related to cybersecurity. This applies to companies that transmit, buy, sell, administer, hold or issue cryptocurrencies as a customer business or an exchange.
This takes away the need for a business to own a BitLicense in order to accept cryptocurrency as payment.
As of last
Companies submit their BitLicense in order to move over to the national registry by submitting a form. Consumers are able to check through the NMLS if the company is allowed to do operations in the state.
It is also not easy to get a BitLicense and the waiting time is also not encouraging. Companies like Genesis Global Trading had to wait for more than three years for its New York licenses.
According to Jeremie Beaudry, the head of compliance at the Atlanta based Bitpay, this New York process is by far the most arduous. This has also caused the CEO of ShapeShift Erik Voorhees and Jesse Powell, head of Kraken to cancel their application processes.
What are your thoughts of the application of this New York BitLicense? Please feel free to leave a comment down below.