Ben Lawsky is now accepting applications from Bitcoin

The age of Bitcoin licenses is upon us.

Today, Benjamin Lawsky, superintendent of the New York State Department of Financial Services issued an order formally opening up the application process for virtual currency exchange licenses.

“The fact is that virtual currencies are unlikely to disappear entirely,” Lawsky said in a statement released today. “As such, turning a blind eye and failing to put in place guardrails for virtual currency firms while consumers use that product is simply not a tenable strategy for regulators.”

Interested companies may immediately submit proposals and applications to operate virtual currency exchanges, according to the statement. But the order also makes it clear that whoever these first applicants are will be part of the state’s ongoing learning process.

“We will continue to proceed swiftly and thoughtfully to provide rules of the road for reputable virtual currency firms seeking to conduct business on-shore in a responsible manner,” said Lawsky.

The 43-year-old former chief of staff to governor Andrew Cuomo has been leading the charge to regulate since at least August 12, 2013 when the DFS officially launched its inquiry into the use of Bitcoin and other encrypted currencies.

On January 28 and 29 he hosted public “Bitcoin Hearings” to query entrepreneurs, venture capitalists, law enforcement representatives and more about the nature of encrypted currencies. But the process was accelerated when Japanese Bitcoin exchange, Mt. Gox collapsed last month.

The department also announced today that it intends to propose the regulatory framework under which these applications will be processed no later than the end of the second quarter of 2014.

Today’s announcement comes in the midst of ongoing plans to create so-called “BitLicenses” for encrypted currency firms operating in New York, according to the statement. The DFS is also expected in the near future to consider proposals and applications for encrypted currency firms other than exchanges.

source: http://upstart.bizjournals.com/entrepreneurs/hot-shots/2014/03/11/ben-lawsky-to-accept-bitcoin-application.html

Ben Lawsky is now accepting applications from Bitcoin