Bitcoin Giants BitPay and Circle Comment On New York’s BitLicense

Caleb Chen @bitxbitxbitcoin
October 20, 2014 23:37 UTC

As the official comment period for the proposed BitLicense regulation comes to a close this month, two of the largest Bitcoin companies in America have revealed their public comment to the New York Department of Financial Services. Circle, a new competitor to Coinbase that provides on and off ramp services for Bitcoin to Fiat and vice versa, as well as BitPay, a leading Bitcoin merchant services and invoicing company, both revealed their official positions on the current BitLicense today.

Also read: Bitcoin Foundation Condemns Lack of Transparency in New York BitLicense

Circle’s Public Comment on the BitLicense

Circle’s official comment comes from their General Counsel and Chief Compliance Officer, John Beccia. Previously, Circle’s Jeremy Allaire and Sean Neville have both posted their personal opinions on the BitLicense. Beccia explained:

Circle believes there are numerous areas in the Proposed Rule, which could negatively impact consumers and business that wish to utilize digital currencies. There are several requirements that are so burdensome (and in some cases nearly impossible to comply with) that if the Proposed Rule were to be enacted in its current form, Circle would have no choice but to exclude New York residents from its service.

Beccia proceeded with nine pages detailing specific areas of the proposed BitLicense that Circle rightfully feels should be changed. Hopefully, the NYDFS will take up Circle’s offer to discuss their comments with experts in the digital currency field.

BitPay’s Public Comment on the BitLicense

BitPay’s official comment comes from Tim Byun, BitPay’s Chief Compliance Officer. BitPay implores the NYDFS to embrace innovation, keep from creating an unlevel playing field, and avoid squashing non-money blockchain-dependent startups that would like to operate in New York. Byun summarized:

In summary, given the significant prospects for Bitcoin the protocol and bitcoin the digital unit, BitPay respectfully requests that the NYDFS consider innovation itself in formulating regulations, establish risk-based rules that help to create jobs rather than eliminate them, leverage existing Anti-Money Laundering frameworks, and clarify that providers of ancillary activities do not require a BitLicense.

What do you think about established Bitcoin companies’ public comments on the BitLicense? Comment below!

Images from Shutterstock.

Last modified: October 20, 2014 23:37 UTC