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The New York Department of Financial Services (NYDFS) has received 22 applications for BitLicense during the initial period. Businesses dealing with cryptocurrency had to submit their applications before 8 August to continue operating within the state.

While a number of companies, including ShapeShift, Kraken, Bitfinex, and Local Bitcoins, opted for leaving the state’s jurisdiction, 22 businesses applied for the license, the NYDFS deputy superintendent for public affairs Matt Anderson revealed to CoinDesk. This number does not include companies which filled applications for banking charters (such as itBit and Winklevoss brothers’ Gemini).

According to Anderson, the financial regulator believes the bitcoin industry has shown a “substantial interest” in complying with BitLicense. He said:

“In the long term, we think this is going to be helpful and I think there'll ultimately be some sort of shaking the wheat from the chaff. We think that those companies that want to do business with strong consumer protections and strong regulatory requirements will continue to submit applications.”

Anderson noted that the ship has not sailed yet for companies that decided to leave. They are welcome to apply for the license any time in the future.

“For companies that startup in or enter New York, the process remains. We're open to that. The amount of applications shows that this will ultimately be an important part of the bitcoin regulatory structure.”

Applicants will be informed on the regulator’s decision in advance. Official approvals are to be published in the New York State Register.

As we reported earlier, a number of major bitcoin companies decided to leave New York at the time BitLicense comes into effect. These included bitcoin exchanges ShapeShift, Kraken, and Bitfinex, LocalBitcoins bitcoin marketplace and BitQuick bitcoin trading platform. However, Coinsetter remains in the state having submitted the application.

According to Barry Silbert, BitLicense has created a deep moat around the more mature, well capitalised bitcoin exchanges.

 

Nadya  Krasnushkina