BitLicense is the first proper form of Bitcoin regulation in the United States, even though most Bitcoin companies do not agree with the proposed requirements. Whereas several Bitcoin exchanges are leaving the New York state area, Bitstamp has announced they will, in fact, be applying for a BitLicense in order to comply with current regulations.
BitLicense Causes Lots of Controversy
Bitcoin regulation is still an important aspect for digital currency to be recognized as a legitimate form of digital money. Yet at the same type, the first revisions of Bitcoin regulation are quite harsh, especially as far as BitLicense is concerned. Applying for a license is expensive, and there is a thorough process every company has to go through.
Additionally, most Bitcoin companies have an issue with the requirement to collect a ton of personal information for every customer. In the case of exchanges, most of that information would be required anyway. Handing over the details, including verification documents, to government officials however, is a bridge too far for most companies.
As far as BitLicense regulation is concerned, there are only two options available for Bitcoin companies: obtain the license, or suspend all services in