Is New York America’s most anti-crypto state?
Crypto laws have long been the most ambiguous in the United States, particularly in New York. The enforcement tone has been notably tough under New York Attorney General Letitia James. New York is widely regarded as one of the most anti-crypto states in the United States. Mostly because of its stringent regulatory environment, which makes it tough for crypto firms to operate. Nonetheless, it is important to note that other states have varying degrees of crypto sector regulation.
Bitcoin and the Big Apple Have an odd connection
The installation of BitLicense is one of the key reasons New York is deemed anti-crypto. Businesses must get a license to operate in the state under this regulatory system. The New York State Department of Financial Services (NYDFS) introduced this framework in 2015, and it applies to enterprises that engage in virtual currency activities. BitLicense mandates enterprises to follow tight laws, such as anti-money laundering (AML) and know-your-customer (KYC).
Others in the crypto world have criticised BitLicense for being too burdensome and restricted, leading some companies to avoid operating in New York entirely. For example, due to BitLicense requirements, the popular bitcoin exchange Kraken announced in 2015 that it would halt its services in New York.
Several cryptocurrency companies have also expressed dissatisfaction with the regulatory structure, leading some to argue that New York is hostile to the industry. So, what causes the location above to be anti-crypto?
Everything begins with leaders
State attorneys general are responsible for upholding and enforcing laws within their jurisdiction. This encompasses consumer protection, securities regulation, and financial fraud legislation. State attorneys general have become increasingly concerned about enforcing bitcoin and blockchain technology legislation in recent years.
As cryptocurrencies’ popularity grows, concerns have been raised regarding fraudulent conduct and consumer safety in the crypto market. State attorneys general possess the power to look into and bring legal action against cryptocurrency exchanges, businesses, and people who break state cryptocurrency laws. The New York Attorney General’s office, led by Letitia James, is the front-runner in this lawsuit.
The Democrat has taken a tough stance on cryptocurrency regulation
The Virtual Markets Integrity Initiative, announced in 2018, focuses on protecting bitcoin investors by enhancing openness and accountability in the industry. As part of this program, the Attorney General’s office requested information from thirteen cryptocurrency exchanges about their operations, security, and compliance procedures.