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New York is now home to the first crypto task force in the United States.
Governor Andrew Cuomo of New York State has signed the Digital Money Bill, which creates a task force on digital money to explore the effects of digital currencies on the state's financial markets.
The task force, whose members are nominated by the Governor, the Senate and the Assembly, will present the reports by December 15, 2020. According to the announcement,
"Members will include stakeholders such as technologists, consumers, institutional investors and small, large and small blockchain and academic companies, and the group will report on digital currency, cryptocurrency and blockchain technology.
Cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and Ripple are digital resources designed to function as a means of exchange that uses advanced cryptography to protect transactions.
Cryptocurrency, however, is more than just a resource that stores value. It is used as a currency, a means for the exchange of goods and services. It is also used to register contracts and transactions. Cryptocurrency tokens are also used as utility tokens that can record or store information; how long has someone been surfing a website with gratifying behavior. "
Clyde Vanel, Councilor for NYS, chair of the Internet and new technology subcommittee, who published the details of the initiative on Facebook, noted several other ways in which cryptocurrencies can be integrated into the public and private sectors, emphasizing why Education among legislators on blockchain technology is vital.
"Indeed, our government should consider blockchain uses with elections, registration of vital documents and real estate transactions, to name a few."
It is aimed at the birth of BitLicense in New York, under the jurisdiction of the New York State Department of Financial Services (NYDFS). By evaluating the risks of cryptocurrency trading, in the light of hacks, missing funds and market manipulation requirements due to a lack of regulation, BitLicense has been designed to protect New Yorkers' consumers. His challenge, however, remained reactive enough to allow innovation to flourish.
But after 10 years since the birth of Bitcoin, and four years since BitLicense was established in 2015 by Governor Cuomo, the regulators have assigned it to only 15 companies. While there were a total of 36 questions, less than half received answers. These numbers tell a story of New York that is atypical of its reputation as a pioneer in finance and technology: a low response rate and a surprisingly low number of applications.
Talent is not crowded in New York. And the department is currently on track to approve its annual average of three BitLicenses annually.
Blockchain's leaders and innovators have criticized the format, accusing regulators of slowing progress in the rapidly evolving sector. Ben Lawsky, former federal prosecutor and architect of BitLicense, has left the agency to join the Ripple Board of Directors.
Touching the laborious application process, cryptocurrency innovators such as ShapeShift and Kraken have withdrawn, turning to other jurisdictions.
New York regulatory authorities appear to be ready to return to the drawing board in order to identify an effective way to accommodate innovation and rapid tracking initiatives by granting regulatory approvals instead of creating bottlenecks that force companies to flee. The purpose or the general idea of the bill is to establish "a commission to study how to regulate cryptocurrencies in the State of New York".
Vanel says
"New York leads the country in finance, we will also conduct an appropriate fintech regulation.The expert task force will help us to find a balance between the existence of a strong blockchain industry and an economic cryptocurrency, while protecting at the same time investors and consumers of New York ".
Instead of driving behind, regulators are focused on taking significant steps.
NYS Assembly Member Ron Kim says,
"I would like to thank my friend and colleague Assembly Clyde Vanel for having worked hard and created this task force to examine how we need to improve the way we see and embrace the cryptocurrency and blockchain technology in New York. work with him and others to introduce the next chapter of decentralization, which can help build more resilient local economies ".
Julie Samuels, Executive Director of Tech: NYC says,
"Cryptocurrency and blockchain technology will undoubtedly influence finance and many other industries around the world for years to come." The New York Cryptocurrency Task Force – the first of its kind in the nation – shows how our state is avant-garde in the study and understanding of these technologies to ensure they can thrive responsibly and effectively, further consolidating New York's position as a global hub for intelligent innovation. "
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