Member of the legislative Assembly of the Assembly of the state of new York Ron Kim (Ron Kim (40th district) said about the bill, focusing on the protection of cryptocurrency investors and reducing bureaucratic obstacles for companies in the industry. The bill was presented on 13 March 2018 after Kim met with the leaders of the blockchain.
The new law called «Act on the cryptocurrency exchanges of the state of new York» (A9899) provides «audit of cryptocurrency companies, third-party depositaries and the prohibition of license fees for the conduct of activities such cryptocurrency companies.»
In the case of the adoption of the law will be amended in Section 9 of the banking Law of the state of new York. After making additions in this section all cryptocurrency of the company will be required to undergo a planned inspection of public or third-party Depositary service. The inspection focused on ensuring the safety of the asset users with compliance with relevant security measures as well as adequate insurance of the assets of the account owners.
All authenticated subjects will receive a digital seal of approval of the state of new York, guaranteeing the reliability and security of the company. Ideally, this law should replace the currently used by the Department of financial services of the state of new York Regulations and to do away with fees based on licensing in favor of coverage based on audits.
According to Kim, all previous attempts to regulate the cryptocurrency space in the US led to the emergence of barriers for companies seeking to develop and function in the industry of digital currencies.
«Now the state of new York needs sensible laws and security procedures that will bring some clarity for companies and the public. The new law will provide consumers and businesses the confidence for mass popularization of cryptocurrencies in the state of new York.»
Despite the fact that such a bill was submitted to the state for the first time, Kim is not the first excursion into the cryptocurrency space. A kind of precursor of the current project was recently published by Kim report entitled «the Future of bitcoin in the state of new York.» In this work, Kim points as «weak points» of ecosystem blockchain unregulated exchange. This vulnerability in combination with the cost of the license Regulations has resulted in a shortage in the state of legitimate cryptocurrency companies, as well as the lack of trust from consumers.
According to Kim, now all over the state of new York there are not more than 10 owners of Regulations, despite the presence of about 1000 active vacancies in the region of the blockchain. Kim hopes that the new bill will provide cryptocurrency business friendly environment that will attract more companies and increase revenue by providing consumers the opportunity to work with reliable organizations.
Throughout 2017, the United States government has maintained relative calm in relation to cryptocurrency and blockchain. While other countries have started to develop a clear legal norm and rules that American investors hear only conflicting statements of the Commission on securities and exchange Commission (SEC), the Commission on trade commodity futures (CFTC) and the various legislatures of States.
On the other hand, began the year promises us regulators to be enough rich, at the Federal level and at the state level, and the Law on the cryptocurrency exchanges of the state of new York is one episode in a developing series of laws that will finally open the topic of regulation of cryptocurrency. Perhaps the new law will mark the beginning of consumer protection in the industry, and provide a more flexible regulatory approach that will increase jobs.