What is the Bitlicense in New York?
If anything, it is regulatory and procedurally more complex to do business in New York than in any other jurisdiction where BTC is legal.
The state of New York is quite stringent. Its regulator says they are protecting their citizens' interests and have rolled out a set of regulations that cryptocurrency businesses must adhere to.
The New York Department of Financial Services (NYDFS) introduced the Bitlicense in 2015 that dictates that all virtual currency providers in the state must acquire a special license to operate. Bitlicense serves a wide range of regulatory functions, touching on crypto transmission, exchange provision, and asset management.
While companies willing to offer crypto services might be subservient, these sets of rules are always controversial.
One of NYDFS rules is that the company must always adhere to KYC and AML laws, an antithesis of crypto.
Besides, they argue that being compliant and receiving approval from the NYDFS is expensive—it can be upward of $100k, unjust, and violates the privacy of NY citizens.
In addition, Bitlicense unfairly limits investment opportunities for New York residents.