Is bitcoin legal in new york
The legality of Bitcoin in New York is a bit complex and has evolved over time. Here's a breakdown:
Initial Ban (2014-2015): In 2014, the New York State Department of Financial Services (DFS) issued a cease-and-desist letter to several virtual currency companies, including Bitstamp, BTC-e, and Coinbase, citing concerns about anti-money laundering (AML) and know-your-customer (KYC) regulations. This effectively banned Bitcoin exchanges and other virtual currency businesses from operating in New York.
BitLicense (2015): In response to the ban, the New York State Legislature passed the BitLicense bill, which aimed to regulate virtual currency businesses in the state. The BitLicense was designed to ensure that virtual currency companies operating in New York complied with AML and KYC regulations, as well as other financial regulations.
First BitLicense Issued (2015): In May 2015, the DFS issued the first BitLicense to Coinbase, allowing the company to operate a virtual currency exchange in New York.
Subsequent BitLicenses Issued (2016-2019): Since then, several other virtual currency companies have received BitLicenses, including Bitfinex, Gemini, and Kraken.
Current Status: Today, Bitcoin and other virtual currencies are legal in New York, subject to the BitLicense regulations. Virtual currency companies operating in New York must comply with the BitLicense requirements, which include:
- Registering with the DFS
- Implementing AML and KYC programs
- Maintaining adequate capital reserves
- Complying with other financial regulations
Notable Exceptions: While Bitcoin is legal in New York, there are some notable exceptions:
- Initial Coin Offerings (ICOs): The DFS has issued guidance stating that ICOs are not considered securities offerings and are therefore not subject to the same regulations as traditional securities offerings.
- Mining: Bitcoin mining is not explicitly regulated in New York, but miners may still be subject to other laws and regulations, such as those related to electricity consumption and environmental impact.
In summary, Bitcoin is legal in New York, but virtual currency companies operating in the state must comply with the BitLicense regulations to ensure they are operating in a legal and compliant manner.