In the aftermath of the BitLicense application deadline this week, a number of prominent bitcoin companies have ceased operations in New York.
Although the reasons behind startups’ reluctance to apply for a license are varied, cost has played a significant part.
Of those who did apply – and fronted the $5,000 non-refundable application fee, most have alluded to an arduous process and high costs.
But just how much did their expenditure amount to?
CoinDesk has spoken to various companies in the space to breakdown the cost of the BitLicense application process both in monetary and non-monetary terms.
‘Expensive and difficult’
“Applying for the BitLicense is an expensive and difficult process, as many have noted. Some other firms have chosen to abandon the New York market entirely, rather than comply. We do not fault them for doing so,” said George Frost, executive VP and chief legal officer at Bitstamp.
Frost estimated the application cost Bitstamp roughly $100,000, including time allocation, legal and compliance fees.
“Our UK parent company has contributed a lot of time, expertise and money in the BitLicense effort, but much of this investment will benefit the entire Bitstamp group,” said Frost.
Bitstamp, the world’s third largest exchange in terms of