Fortune magazine’s Daniel Roberts has reported that Benjamin Lawsky, Superintendent of the New York Department of Financial Services is finalizing a new license that will require all digital currency companies to apply for a “Bit License" before they can conduct Bitcoin transactions. This license will serve to regulate Bitcoin transactions and will help curb any illegal activities done through this crypto currency.
Although this news may be to the dismay of the Bitcoin Community, a more regulated Bitcoin will ensure much safer transactions and reduce occurrences of swindles and fraudulent business. The Bit license first made its way to the public attention in 2014. At that time, this Bitcoin regulatory framework was very restrictive in nature and prohibited small Bitcoin startups to conduct Bitcoin transactions due to heavy licensure fees. After a year of commenting and public scrutiny, NYFDS has finally finished a draft of regulations that will be suitable for both large and small Bitcoin enterprises.
Bitcoin, like all other crypto currency, has a decentralized system of transactions and in the past has been used to the advantage of many fraudulent schemes. The currency in itself is not bad. With lower transaction costs, regulation to the crypto currency realm can only help it become a more mainstream phenomenon.