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A bitcoin entrepreneur, Barry Silbert described short-term consequences of BitLicense, that came into effect last Friday, on Twitter.

According to Silbert, BitLicense (effective since last Friday) has both good and bad sides:

“The new BitLicense has unintentionally created a deep moat around the more mature, well capitalized bitcoin exchanges,” wrote the entrepreneur on Twitter.

Silbert thinks that the new players on the market will most probably buy the firms that already have the license:

“For banks, brokerages, etc. looking to get into the bitcoin market making business, they will look to acquire companies with a license.”

In general, the introduction of BitLicense will help to enhance competitiveness on the market:

“All in all, the BitLicense is bad for bitcoin, the community and NY...but creates real competitive advantage for those with a license,” wrote Silbert.

The New York Department of Financial Services published a new version of the regulation on 4 June. According to this document, Bitcoin companies are no longer required to check every application update with the department. NYDFS also addressed the problem of “double licensing” and some other issues that were a subject of heated discussion in the bitcoin community. After the publication some companies, for example, ShapeShift, decided to leave New York.

 

Roman Korizky

Comments  

# greatwolf 2015-08-10 20:15
Yea those w/ a license has a competitive advantage in the same sense that the Federal Reserve has a competitive advantage when it comes to money printing -- ie. in the same sense that a bully has a competitive advantage when it comes to him persuading you to part with your lunch money.