Performing retail conversions services, including conversion or
exchange of fiat currency, or other value into virtual currency conversion or
exchange of virtual currency into fiat currency or the conversion or
exchange of one form of virtual currency into another form of virtual currency.
So if you're trading virtual currency for fiat currency or virtual currency for
virtual currency.
And finally, controlling, administering or issuing a virtual currency.
If you're doing any one of those things In the state of New York or
operating with a New York state resident then you need to get
a BitLicense from the New York Department of Financial Services if
this regulation goes in Into effect.
You would have to apply for a license.
To apply for a license, there's detailed language in the proposed regulation,
which you can read, but roughly speaking,
you have to provide information on the ownership of your enterprise,
on your finances and insurance, on your business plan.
Generally to allow the Department of Financial Services to know who you are,
how well backed you are, where your money comes from and what you're planning to do.
You would have to pay an application fee.
You would have to pay.
A licensee would have to do the following thing once you had a license.
You have to provide updated information to the Department of the Financial Services
about the things I talked about before, Ownership Finances Insurance and so on.
You have to provide Periodic Financial Statement so they can keep track of how
you doing financially, you'd be required to maintain a financial reserve.
The amount of that would be set by the Department of Financial Services based
on various factors about your business, what's the nature of your business,
how well financed it is, who it is, how big it is, etc, etc.
The DFS would be able to set rules about that.
There are detailed rules about things like how
you would keep custody of consumer assets.
There are anti money laundering rules which might or
might go beyond what's already required.
There are rules related to cyber security, having a cyber security plan and
penetration testing and so on, there are rules about disaster recovery,
you have to have a Disaster Recovery Plan that meets certain criteria.
There are rules about record keeping, you have to keep records and
make them available to the DFS on certain circumstances for some length of time,
about certain kinds of activities.