Adam Draper: New York’s BitLicense Will Hurt Startup Incubators

Startup problems

Boost VC CEO Adam Draper has launched a petition seeking a number of changes to New York’s proposed BitLicense framework.

The petition calls for New York regulators to limit the amount of information they gather on virtual currency startups to what is mandated by federal standards; that the BitLicense avoid using duplicative language already enshrined in federal law; and that regulators give their approval for what Draper calls a “sandbox of innovation in the financial markets”.

In a video accompanying the petition, Draper stated that the changes are needed to reduce startup costs for digital currency businesses. He estimated an initial cost of $2m for a company seeking a BitLicense, with $1m per year in additional costs.

Draper told CoinDesk that these expenses include the costs of hiring compliance officers, meeting reporting standards, collecting necessary information, AML/KYC expenditures and associated legal costs.

He went on to state that the BitLicense would make it difficult for accelerators like Boost, which provider early funding to potential innovators, to support nascent startups in the digital currency space, explaining:

“The BitLicense frame work will definitely impair bitcoin startups from starting, which would impact my business negatively. My business is to drive innovation in technology,

Read more ... source: CoinDesk