Every month, itBit, a global exchange with offices in New York and Singapore offering institutional and retail investors a powerful platform to buy and sell bitcoin scours the globe to bring the latest in digital currency regulation news. Chief Compliance Officer, Erik Wilgenhof Plante, highlights key regulations and legislation impacting retail and institutional digital currency investors worldwide. You can read the latest April roundup below…
United States
New York Department of Financial Services to release final BitLicense regulatory framework in May
Superintendent Benjamin M. Lawsky says that he expects the NYDFS to provide a framework, which would regulate business activity for the state of New York, before the end of May. The BitLicense was first proposed at the close of 2013 and will require digital currency companies to obtain a license in order to transmit money on behalf of customers. Lawsky says that the department is also keeping a close eye on digital currency regulation at the state, national and global level as they finalize plans for regulation.
Tennessee considers bill allowing bitcoins for political donations
A bill that would make it legal for political candidates to receive digital currency donations passed in Tennessee’s house by a vote of 61 to 28. The bill has already been passed by the state senate and will now go to Governor Bill Haslam for approval.
Europe
European Securities and Markets Authority (ESMA) seeks feedback on blockchain technology
The ESMA, securities regulator for the EU, is delving further into the question of how blockchain technology is used to “issue, buy and sell and record ownership of securities.” The regulator wants those in the industry to help them by answering a 10 question survey regarding the use of digital currencies, which will help provide an assessment of what types of risks and rewards the financial products can provide. Responses must be submitted by July 2015 and findings will be made available to the public at a later date.
Australia
Australian Central Bank decides Bitcoin regulation isn’t worth it
On April 7th, The Reserve Bank of Australia announced that it would likely not pursue regulation of Bitcoin writing, “it is currently unlikely that any benefits of regulation would outweigh the potential costs.”
After an inquiry into the use of the technology, the RBA wrote, “The bank’s judgement is that the current very limited use of digital currencies means that they do not raise any significant concerns with respect to competition, efficiency or risk to the financial system.” In its statements, the central bank offers the possibility of international cooperation in order to mitigate any global risks posed by the digital currency through a regulatory institution such as the Bank for International Settlements.
To read past Global Digital Currency Regulatory Roundup articles, click here.