Last week, the New York State Department of Financial Services, or NYDFS, proposed changes around its state-wide BitLicense legal guidelines. Gemini, a crypto exchange calling New York home, sees the NYDFS’ move as a positive.
Gemini’s chief compliance officer, Noah Perlman, told Cointelegraph:
“The proposed conditional licensing framework is another step the DFS is taking to help ensure this industry continues to grow and innovate — so that it becomes more accessible to more people without compromising safety or security.”
The NYDFS suggested BitLicense alterations last week
New York has made a name for itself as a regulatory hotbed in the U.S. The state ushered in the BitLicense in 2015, putting stringent regulatory requirements in place for companys dealing with cryptocurrencies.
June 25, 2020 saw the NYDFS put out a request for comment on what it called a conditional BitLicense, complete with adjusted regulatory parameters. Essentially, the conditional license acts as a mentorship of sorts. It lets BitLicensed companies work with non-BitLicensed entities in navigating regulator expectations en route toward licensure.
Gemini chose to stay in New York
A U.S. regulatory-friendly crypto exchange, Gemini sees value in governmental guidelines, but also values room for innovation and growth, as seen in former commentary from exchange founders Tyler and Cameron Winklevoss.
“Gemini was founded on the principle that thoughtful regulation will pave the way to healthy, thriving markets,” Perlman said.
“We chose to headquarter Gemini in New York State and go through the added regulatory hurdles of receiving a trust license from the NYDFS for this exact reason. NYDFS has led the charge on regulating crypto and its thoughtful approach to regulation is helping propel the cryptocurrency industry forward.”
Contrary to Gemini, however, a number of crypto entities left New York after the region came forward with its BitLicense in 2015, including exchange Kraken, and Paxful, a crypto sale and purchase outlet.