Published by Ross Peili
coincodex.com
Right after the IRS categorized cryptocurrencies of the likes of Bitcoin as "property", basically in order to include the possession of such digital assets in taxation protocols, the New York State Department of Financial Services (NYSDFS) had proposed a regulatory framework for virtual currencies on July 17, 2014, making it the first official "regulation" in effect, subjecting cryptocurrencies. The first state-required license for Bitcoin 'players' Essentially the new regulations as proposed by the NYSDFS aimed to protect consumers, prevent money laundering activities and improve the cybersecurity underlying businesses that use virtual currencies.
More specifically, crypto-services brokers should be able to define the exact usage of virtual assets within the legal framework of the company, provide modern cyber-security methods to ensure consumer protection, disclose detailed personal data regarding the customers and third parties involved in a cryptocurrency transaction, and keep a traditional ledger of all crypto-affiliated activities, besides the already distributed ledger a blockchain-platform carries. The new regulatory framework was tailored to affect businesses that sought to offer financial services in the US, whether domestic or international-based companies, that included but were not limited to converting fiat US dollars into Bitcoins and/or other digital currencies and vice versa.
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