2013-11-14 NY regulator considers bitcoin regulation license

[markjamrobin]

NYDFS also believes that it is in the long-term interest of the virtual currency industry to ...

This is disingenuous. It seems to me that the virtual currency industry is able to decide what is in its best interest. It doesn't need some regulators to tell it. The truth is that the NYDFS believes that it is in their best interest ...

Agreed, we do have network consensus for a reason.

[jdbtracker]

So, are they planning to make a license for USING digital currencies...
or for running an exchange or similar service DEALING IN digital currencies.

If its the first, I'll be flabbergasted at their stupidity.
If its the second, I'll actually be pretty happy. Currently, exchangers need a money transmitter license. A more specialized license could potentially actually help Bitcoin.

If they are thinking of making it easier that would be great... but only time will tell, and how would they do that anyway?
Can they Bypass federal regulations?

[BCB]

If New York State creates a BitLicense it would only be applicable to business that server New York State citizens.  The business would still have to be registered with FinCEN and comply with all Anti-Money Laundering (AML), Know Your Customer(KYC) and Customer Identification Programs (CIP).   

[segeln]

If New York State creates a BitLicense it would only be applicable to business that server New York State citizens.  The business would still have to be registered with FinCEN and comply with all Anti-Money Laundering (AML), Know Your Customer(KYC) and Customer Identification Programs (CIP).  

thanks for this clarification. but it is only a Hearing and no legal steps will be taken.
Legal steps take a  Long time to be taken and finally executed.

[BCB]

New York State Department Of Finances is a Regulator.  They make rules and regulation based on the existing law.

New York State Banking Law
http://goo.gl/KF4R8n

If, based on the hearings, the Regulator decides to issue additional "guidance" as FinCEN did, or new regulations it could go into effect in 60 to 90 days.

They seem to be acting on this pretty quickly.  He issued the notice in November.  The hearings are in January.  I'd expect to hear of:
1. new guidance or
2. news of additional hearings

by June.

[segeln]

New York State Department Of Finances is a Regulator.  They make rules and regulation based on the existing law.
New York State Banking Law
http://goo.gl/KF4R8n
If, based on the hearings, the Regulator decides to issue additional "guidance" as FinCEN did, or new regulations it could go into effect in 60 to 90 days.
They seem to be acting on this pretty quickly.  He issued the notice in November.  The hearings are in January.  I'd expect to hear of:
1. new guidance or
2. news of additional hearings
by June.

the link is not working
but anyway those regulations are State Regulation and not federal regulations , right ?
What kind of regs do you expect ?
 I suppose  Kind of tax-regs.

[Carlton Banks]

Interesting to note that since this was published, bitcoin uptake has been higher in New York state than pretty much anywhere else. If you use coinmap.org as a rough guide, at least.

[BCB]

State Regulators are usually concerned with Safety and Soundness and consumer protection.

Currently to operate as an "issuer" (miner) or an "exchanger" as a business in New York State you are required to have a net worth of over $1 million USD, you have to post a bond of $500,000.00 and a dollar for dollar capital requirement for any consumer funds you have at risk.

NY State seemed to suggest that they are looking to lower these requirement for virtual currrecy start ups that are operating under smaller volumes.

I don't believe they will be discussing taxes but that is also a concern.

Look for the IRS to rule on Taxes by this summer as well.

The GAO and The National Taxpayer advocate have both requested guidance from the IRS.

MSP #24
http://www.taxpayeradvocate.irs.gov/userfiles/file/2013-Annual-Report-to-Congress-Executive-Summary.pdf

http://www.gao.gov/assets/660/654620.pdf

Here is a short video interview with the guy from the GAO
http://video.pbs.org/viralplayer/2365095653

[marcus_of_augustus]

 ... because the NY financial regulators have done such a stellar job with the criminals infesting Wall St. 

... keep smoking that delusion pipe, it seems to be working for you.

[segeln]

State Regulators are usually concerned with Safety and Soundness and consumer protection.

Currently to operate as an "issuer" (miner) or an "exchanger" as a business in New York State you are required to have a net worth of over $1 million USD, you have to post a bond of $500,000.00 and a dollar for dollar capital requirement for any consumer funds you have at risk.

NY State seemed to suggest that they are looking to lower these requirement for virtual currrecy start ups that are operating under smaller volumes.

I don't believe they will be discussing taxes but that is also a concern.

Look for the IRS to rule on Taxes by this summer as well.

The GAO and The National Taxpayer advocate have both requested guidance from the IRS.

MSP #24
http://www.taxpayeradvocate.irs.gov/userfiles/file/2013-Annual-Report-to-Congress-Executive-Summary.pdf

http://www.gao.gov/assets/660/654620.pdf

Here is a short video interview with the guy from the GAO
http://video.pbs.org/viralplayer/2365095653

since I am german I have to thank you for your Explanation. But what is IRS exactly,please

[BCB]

Internal Revenue Service (IRS)  United States Federal Tax Authority.  They have not yet ruled on taxation of bitcoin.

Many of US States have taxes for State programs.  The IRS is the tax authority for the nation.  So a US Citizen may pay taxes to local authority, a State Authority and a Federal Authority.

[howzar]

Oh and here we go with the strict regulators of newyork. I think they wouldn't be able to stop it of course but they might make it illegal to just send btc's without a licence. I think we should wait and see.

[marcus_of_augustus]

Oh and here we go with the strict regulators of newyork. I think they wouldn't be able to stop it of course but they might make it illegal to just send btc's without a licence. I think we should wait and see.

No, now they realise they can't stop it they want to do the next best thing, take a cut. The elite ticket clippers always use 'licenses' to get their skim up front.

[segeln]

Internal Revenue Service (IRS)  United States Federal Tax Authority.  They have not yet ruled on taxation of bitcoin.

Many of US States have taxes for State programs.  The IRS is the tax authority for the nation.  So a US Citizen may pay taxes to local authority, a State Authority and a Federal Authority.

Thanks again,
it reminds me of Taxation in Switzerland:just the same 3 Authorities
local (Gemeinde/Stadt),state(e.g.Graubuenden/Engadin) and Bund