NY Bitlicense Finalized

DIGSOUTH_ShaneSnowQA_042913New York’s Department of Financial Services finalized¬†its rules regarding the regulation of a person engaged in “any virtual currency business activity.”

Under these regulations, “virtual currency business activity” is defined to mean:

“the conduct of any one of the following types of activities involving New York or a New York Resident:

(1) receiving Virtual Currency for Transmission or Transmitting Virtual Currency, except where the transaction is undertaken for non-financial purposes and does not involve the transfer of more than a nominal amount of Virtual Currency;

(2) storing, holding, or maintaining custody or control of Virtual Currency on behalf of others;

(3) buying and selling Virtual Currency as a customer business;

(4) performing Exchange Services as a customer business; or

(5) controlling, administering, or issuing a Virtual Currency.

The development and dissemination of software in and of itself does not constitute Virtual Currency Business Activity.”

There are two categories of exemption:

“(1) Persons that are chartered under the New York Banking Law and are approved by the superintendent to engage in Virtual Currency Business Activity; and

(2) merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or services or for investment purposes.”

These rules also include a detailed application, a $5000 application fee, a compliance officer, compliance policies and procedures on anti-money laundering and security, capital requirements, and consumer disclosures.