BitLicense Is An Example of Why Bitcoin Regulation Needs To Be Worked On

Bitcoin regulation is both a blessing and a curse, as regulators are trying to apply the same values and principles of traditional finance to a new breed of technology.  However, that approach is not always beneficial to existing and up-and-coming businesses.  In particular,  New York’s BitLicense is raising a lot of questions.

Short Timespan To Complete Application

One of the main concerns surrounding New York’s BitLicense is the fact that existing Bitcoin companies have very little time to complete their application.  If they fail or refuse, and continue their Bitcoin-related activity, they will be punishable by law for running an unlicensed business.

New York-based businesses have until August 8th to submit their BitLicense application.  Until a decision is made on whether or not a certain company receives their license, they are operating in a compliant manner according to the letter of the law.  However, if the verdict would be negative, said business would have to shut down operations in the New York area immediately.

“Any person engaged in virtual currency business activity that fails to submit an application for a license before or on the date of August 8, 2015, shall be deemed to be conducting unlicensed

Read more ... source: CryptoArticles