The New Regulations: What’s Cooking?
In a bid to tackle the spaghetti-like mess of regulations surrounding cryptocurrency, New York has decided to whip up a new recipe — and it’s not exactly vegan. The state government has just green-lighted a requirement for all crypto companies holding a BitLicense to shell out assessment fees. This move follows the signing of the FY2023 budget by Governor Kathy Hochul, which now empowers the Department of Financial Services (DFS) to collect these fees, making them a mandatory ingredient for crypto business operations in the Empire State.
The BitLicense Saga: A Glimpse into the Past
New York was the trailblazer in the U.S. crypto world, introducing the notorious BitLicense — a permit for crypto firms that has left many scratching their heads. With application fees already priced at a cool $5,000, these startups have been bending over backward to comply with capital requirements that seem to change more often than the weather. The state claims it’s important for keeping the crypto industry in check, but many are left pondering if the regulations are a deterrent rather than a help.
Why the Fees Matter
While the exact amount of the new assessment fee remains as mysterious as the origins of Bitcoin, past fees levied on other financial entities can easily exceed tens of thousands of dollars per year. This isn’t just a walk in the park for crypto companies, as managing these costs could leave many entrepreneurs reaching for their stress balls.
Adrienne Harris Weighs In
DFS Superintendent Adrienne Harris has tried to sell these fees as part of a greater good, emphasizing that it will bolster the department’s operational capabilities to better regulate this
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