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BitLicense Application Released by New York State

Last Updated March 4, 2021 4:44 PM
Ned Miller
Last Updated March 4, 2021 4:44 PM

The New York Department of Financial Services has released the application for a “License to Engage in Virtual Currency Business Activity” more commonly known as the Bitlicense. You can view it here (PDF).

Bitlicense Controversy

The Bitlicense application is 31 pages. I just checked my handy bible, and Genesis is only 33 pages. God needed 2 more pages to create the world than Ben Lawsky needs to vet Bitcoin companies. In case you’re not familiar, Ben Lawsky is a former regulator who is primarily responsible for the new virtual currency regulations in New York. Eric Voorhees, CEO of shapeshift.io, recently said that Lawsky is the embodiment of crony capitalism.

Voorhees said shapeshift.io would be leaving NY. He’s certainly not the only CEO leaving. Eobot Bitcoin mining company also said they were leaving NY because of the BitLicense controversy. Bitcoin Mining Pool BTC guild cited the Bitlicense as a contributing factor in their decision to shut down. This list is by no means exhaustive.

The (very dense) Text

On to the actual BitLicense application. There are a ton of questions, and I’m still trying to sift through them, but there are some interesting questions and requirements. For instance, every applicant is required to provide “Personal and professional references (at least three of each, excluding relatives), which must be furnished in writing.” So no, your mother can’t vouch for you.

Of course the application is ridiculous. It’s invasive. And when a company is done applying for the BitLicense, then they have to start invading their customers privacy. Land of the free.

This is a developing story. For more background on the new regulations, you can catch up on all the BitLicense drama here and here. 

What do you think is the most ridiculous aspect of the BitLicense application? Share above and comment below.

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