NYDFS Chief Denies BitLicense Stifles Innovation
The controversial cryptocurrency regulatory framework of New York, the BitLicense, has been criticized time and again much too often in the industry circles. In fact, they are put up right there as an example for all the other regulators to not follow suit and to not be like if those regulators seek to have some steady growth in innovation in this gruel some field.
The superintendent of the New York Department of Financial Services (NYDFS), Maria T. Vullo had mentioned that this is a very childish thing to do earlier this Thursday. She had stated her opinion at the Council on Foreign Relations (CFR) during a panel discussion. Vullo had some very strong words to state for the those had criticized much heavily on the regulatory framework. She stated then that,
“I think regulators absolutely need to be in the space. I know [companies] are saying ‘we’re innovative, we’re startups, we need to be left alone and put in a sandbox.’ Toddlers play in the sandbox. Adults play by the rules.”
Vullo also made it clear that her task is to look into and mitigate the risks of criminal activities and this requires regulations. She stated,
“The idea [that] startups get to be in the space before they’re regulated is just not something that is consistent with what we do here in this country in terms of mitigating risks when people, particularly people’s financial well-being is part of the equation.”
As reported, the agency has only approved five applications since 2015, back when the framework had been finalized. Even then, the superintendent had said that the distributed ledger technology (DLT) has potentials which expand way beyond cryptocurrency alone also mentioning that the framework targets a very narrow range of activities that are considered to be risky.
Vullo also went on to mention, “I think we also need to separate the sort of transmission of the bitcoin from the technology that underlies this. We’re not regulating the technology. We’re regulating certain types of activities through which that technology is being used, and I think that technology has lots of promise for other things as well.”
Adding, “We need to do our best to manage the risk and at the same time allow something new to flourish, but the international nature of this and the technology is really what’s taking us [time] because some people are uncomfortable.”