The Department of Financial Services superintendent, Benjamin Lawsky, who has been leading the charge in an effort to regulate bitcoin, is reportedly considering resigning from his position in early 2015. Benjamin Lawsky is perhaps the most powerful person in New York State to be pushing regulation on the bitcoin community. Many are curious as to where Lawsky will go: a bank? a finance company? a Bitcoin company? an elected position?
After the election of last week, it’s not uncommon to see several resignations follow. Perhaps the most interesting resignation is that of Benjamin Lawsky. Mr. Lawsky is probably best known in the bitcoin community for pushing the BitLicense, which will have a new form including Transitional Licenses.
NYDFS BitLicense Will Continue Even Without Lawsky
The cry for regulations began following the fall of the Tokyo-based Mt.Gox exchange. In an attempted to create trust and confidence for bitcoin users and investors, New York State increased its government involvement with its BitLicense. Benjamin Lawsky has been instrumental in forming and shaping the regulation. In March, Lawsky began accepting applications for BitLicense in order to operate within the city. In July, the Department of Financial Services proposed their first public draft of regulations where opponents and supporters of the regulation gave their feedback.
It’s unclear what this means for BitLicense and the regulation that has been in the making. BitLicense has undergone revisions and many await its new form. The NYDFS had all but admitted that the original proposal was originally too far sweeping. Recently the NYDFS clarified that Bitcoin software developers did not need to apply for a BitLicense and promised to have a revised proposal for the public at the beginning of December.
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