The New York State Department of Financial Services (DFS) has proposed a new conditional licensing framework, which will make it easier for cryptocurrency start-ups to set up in the city.
DFS is seeking comment on its new rules
Under the proposed framework, crypto hopefuls can collaborate with authorised companies. These companies include existing BitLicense holders or firms with trust charters in the state.
DFS expects firms that apply for the conditional licence to eventually make an application for the full BitLicense.
The news comes amidst the signing of a memorandum of understanding between DFS and the State University of New York (SUNY).
The agreement creates a virtual currency program to support nascent virtual currency companies five years after the introduction of New York’s virtual currency license.
“Significant outreach to industry and other experts in the field,” informed the drafting of the new framework.
Linda Lacewell, superintendent at DFS, says the measures will help New York’s economy “back on its feet.”
She adds: “DFS is proud to foster accessibility and will continue to blaze a trail in the virtual currency marketplace.”
DFS is seeking comments from all interested parties and the general public regarding its new framework until 10 August 2020.
The regulator is analysing which firms are the most suitable, and will benefit from the proposed framework.
It’s also issuing a notice aimed at creating a “more transparent and timely process” for virtual currency licence applications.
Related: US and French regulators team up to ease fintech market entry
