New York DFS Revises BitLicense Framework for Virtual Currency Regulation

Virtual Currency NYDFS

On February 4, New York DFS proposed revisions to its anticipated regulation of virtual currency companies. The DFS originally released a proposal on July 17, 2014, and on December 18, Superintendent Lawsky delivered remarks stating the DFS was revising its proposal to provide more flexibility to virtual currency startups. The revised proposal (i) gives DFS the option of renewing a conditional BitLicense if the virtual currency firm continues to meet operating criteria; and (ii) removes previous language stating that a firm operating a BitLicense is required to obtain addresses and transaction data for all parties to a virtual currency transaction. Regardless of the changes, virtual currency firms still must meet strict standards for consumer protection and anti-money laundering requirements.