What is BitLicense?
Let's find out BitLicense meaning, definition in crypto, what is BitLicense, and all other detailed facts.
BitLicense was one of the first regulatory measures aimed at cryptocurrency companies in the US. It was first introduced in July 2014 and officially came into effect in August 2015.
BitLicense provides regulations for a number of crypto-related business activities, like buying and selling crypto as a customer business, storing and holding crypto on behalf of others, and issuing virtual currencies.
Any New York resident or non-resident temporarily staying in the state who wishes to engage in the regulated crypto activities must acquire the BitLicense. However, this only affects businesses – individuals who want to make or receive cryptocurrency transactions do not require the permit.
BitLicense received a lot of backlash upon its implementation, with numerous Bitcoin (BTC) companies stopping their business activities in New York, causing “The Great Bitcoin Exodus”.
One of the main complaints was the restrictions placed on businesses. Furthermore, the application fee of roughly $100,000 was seen as vindictive by some companies.
Not all companies that applied were granted the BitLicense in 2015. However, in the years since, BitLicense has played a big role in setting the standard for cryptocurrency regulations on a more global scale.