‘BitLicense’ Regulatory Regime Proposed by N.Y.’s Lawsky

New York’s financial regulation chief is proposing a “BitLicense” regulatory regime that he says will protect consumers and root out wrongdoing without stifling innovation by virtual-currency businesses in the state.

Companies that store or exchange virtual currencies for cash would have to obtain a license from the state under rules proposed today by Benjamin Lawsky, New York’s superintendent of financial services. The measure, which will also cover issuers of currencies, will be open for public comment for 45 days beginning July 23, Lawsky said in a statement.