The list of companies formally speaking out against New York’s proposed BitLicence regulations is growing quickly.
Last month, The CoinFront reported on a statement made by Circle CEO Jeremy Allaire, who called the BitLicence “technically impossible to comply with”. Since then, other companies have similarly expressed disappointment.
Xapo
Wences Casares, CEO of Xapo, a Bitcoin debit card and banking company, has posted on their blog with a similar sentiment.
“We agree with the positions Jeremy [Allaire, Circle CEO] outlined in his post…and stand with our friends at Circle”, the post reads. While they agree that “regulation of bitcoin in the right form is a necessary stem in the road to maturity for the industry,” they also express that “New York’s proposed BitLicense in its current form is the wrong form of regulation and in fact poses a threat to New York and New York consumers.”
Casares expresses his sentiment that the BitLicense will squelch competition, hinder innovation, and hold back the entire Bitcoin industry.
He also believes the BitLicense will have the opposite effect than intended, since those companies made up of professionals with experience in security, compliance, and management will realize that doing business in New York under the proposed regulations will be impossible. This will drive the legitimate companies out, and leave only the seedier underground.
As a result, if the BitLicense is passed in the way it’s currently framed, Xapo will join Circle in blocking all New York residents from using their service.
“We believe bitcoin will create more wealth and jobs than the entire internet economy combined and New York gets to choose whether to be a leader and revisit the heyday or lose its invite to the party completely.”
OkCoin
Changpeng Zhao, CTO of Chinese Bitcoin exchange OKCoin and former head of development for Blockchain.info, has also expressed his opinion on the BitLicence.
“The current version of the BitLicence has too many restrictions and constraints which will affect not only OKCoin business but also the development of Bitcoin industry seriously,” Changpeng told Chinese Bitcoin news outlet Bitell.
For example, our OKCoin international station is run by a Singaporean company, but according to the present BitLicense’s proposal, if we have any users from New York, then we must submit all the user’s information to the New York government, including non-American users. Besides, all employees of the company must provide their identity authentication, including fingerprint, which is not reasonable logically.
OKCoin submitted their comments to the NYDFS, but is pessimistic about the effect it will have. “Accepting or not is their business, we could not influence. However, the more comments and responses, the more it’s likely to be accepted.”
OKCoin will join Xapo and Circle in blocking New York users from their service if the BitLicence is passed in its current form. “The next generation internet financial innovations will abandon New York in a short time, then New York will slip rapidly from its position of a financial leader.”
New York’s Precarious Choice
The decision made by New York’s financial regulators will have a tremendous impact on the millions of people in their jurisdiction.
Bitcoiners are an optimistic bunch, with many believing it could replace the current fiat-based global economy. If this becomes a reality, the BitLicence could seal New York’s fate as a backwater in the new global economy.
More Business Speak Out Against New York's BitLicence
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