Industry analysts have stated that a BitLicense template is not the way forward for the U.K., according to a report from EuroMoney.
In June 2015, the New York Department of Financial Services (NYDFS) released its application for a ‘License to Engage in Virtual Currency Business Activity’, also known as a BitLicense. The New York BitLicense was created to protect consumers from fraud and loss of money, but seems a tad bit invasive and time-consuming.
Applying for the license involves large amounts of paperwork, burdensome reporting requirements, and expensive attorneys. Not only that, but there is the $5,000 application fee to face while a completed application can run up to 500 pages. Unsurprisingly, it received many critics who claimed that it put too much of a burden on fledging startups with many stating that they would not be serving people in New York.
After all, the whole point of using digital currencies such as bitcoin is to conduct transactions anonymously on a public ledger by a peer-to-peer network, thus ensuring an individual’s privacy while