New York Requires Crypto Companies to Pay Assessment Fees

New York Requires Crypto Companies to Pay Assessment Fees

Companies with BitLicense will be required to pay regulatory assessment fees in order to do business in New York. The provision was included in the state’s Fiscal Year 2023 Budget, which Governor Kathy Hochul signed into law on April 9, 2022. The budget proposal allows the New York State Department of Financial Services (NYDFS) to charge fees on enterprises that possess a BitLicense in the state. This new rule would bring cryptocurrency firms into line with other regulated financial services firms that currently have to pay yearly assessment fees to operate in the state.

New York became the first state in the US to require virtual currency enterprises to seek a license, dubbed the BitLicense, in 2015. To engage in “virtual currency commercial activity” in New York, companies must get a BitLicense, which is widely defined in New York’s virtual currency law and includes:

• Receiving virtual currency for transmission or transmitting virtual currency;
• Storing, holding or maintaining custody of virtual currency on someone’s behalf;
• Operating a business that buys and sells virtual currency;
• Operating a business that performs virtual currency exchange services;
• Controlling, administering or issuing virtual currency.

Obtaining a license through the BitLicense program now costs a. $5,000 application fee. The real cost of getting a BitLicense, on the other hand, is substantially greater. Companies routinely spend several times that amount preparing a BitLicense application, and they are also subject to capital limitations set by the New York Department of Financial Services.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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