The Real Cost of Applying for a New York BitLicense

ashour

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Quote from: Mickeyb on August 16, 2015, 03:20:32 AM

This is really a lot of money for any Bitcoin business. $100,000 is a lot even for a huge exchange like Bitstamp is. I would like that no one applies for the BitLicense so they stay out of the game completely, f**k NY, they don't deserve better.

This license is just another way to steal money from the people, nothing else.

I think that most of these services that apply for a bit license actually benefit from it. Maybe legal benefits or social security benefits or just to tell the government that "Hey we are a legal company that deals with bitcoin and we have nothing to hide"

ashour

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Quote from: ikydesu on August 14, 2015, 12:26:56 AM

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Frost estimated the application cost Bitstamp roughly $100,000, including time allocation, legal and compliance fees.

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Jaron Lukasiewicz, CEO and founder of Coinsetter, noted his company had spent approximately $50,000 on BitLicense-related expenses over the past two years. "I think its bigger cost, though, has been in the uncertainty it created for investors looking to invest in our space – hopefully that will begin to reverse itself now."

Why the cost between Bitstamp and Coinsetter is different Huh

http://www.coindesk.com/real-cost-applying-new-york-bitlicense/

It really is expensive for bitcoin businesses. But for the businesses that apply for one it is probably worth it.

Mickeyb

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Move On !!!!!!

This is really a lot of money for any Bitcoin business. $100,000 is a lot even for a huge exchange like Bitstamp is. I would like that no one applies for the BitLicense so they stay out of the game completely, f**k NY, they don't deserve better.

This license is just another way to steal money from the people, nothing else.

TheMage

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Quote from: Elwar on August 14, 2015, 05:00:30 AM

Heh, I like this

S4VV4S

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Quote from: fairglu on August 14, 2015, 05:12:28 AM

Quote from: S4VV4S on August 14, 2015, 04:43:00 AM

Please excuse my ignorance, I did not follow up on this Bitlicense thing as it does not concern me.
But I need to ask this:
Does the Bitclicense apply to exchanges only or to ANY business accepting Bitcoin?
E.g: If a coffee shop accepts Bitcoin, do they need to apply for it?

IANAL but as I understand it, besides the usual financial services (exchanges, lending, etc.) it also applies to "service contract providers" (http://www.dfs.ny.gov/about/whowesupervise.htm) that accept "virtual currencies".

So it would not apply to a shop that sells goods (like coffee), but if you sell a service with any kind of contract and accept virtual currencies, it would apply to you, and this would cover many things from server hosting to a car mechanic, as soon as it's paid with in crypto, and you accept cryptos directly.
If you accept cryptos through a payment processor like BitPay, then you're not concerned as you are paid in fiat (and the BitLicense stuff is BitPay's concern).

Thanks for the answer.
So, from what I gather they are trying to create the "Payment Processors" of crypto.
Surely most businesses will not want to pay the Bitlicense fee and if they want to accept crypt they are left with services like BitPay.
Seems like an attempt to control the transactions IMO.

fairglu

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Quote from: S4VV4S on August 14, 2015, 04:43:00 AM

Please excuse my ignorance, I did not follow up on this Bitlicense thing as it does not concern me.
But I need to ask this:
Does the Bitclicense apply to exchanges only or to ANY business accepting Bitcoin?
E.g: If a coffee shop accepts Bitcoin, do they need to apply for it?

IANAL but as I understand it, besides the usual financial services (exchanges, lending, etc.) it also applies to "service contract providers" (http://www.dfs.ny.gov/about/whowesupervise.htm) that accept "virtual currencies".

So it would not apply to a shop that sells goods (like coffee), but if you sell a service with any kind of contract and accept virtual currencies, it would apply to you, and this would cover many things from server hosting to a car mechanic, as soon as it's paid with in crypto, and you accept cryptos directly.
If you accept cryptos through a payment processor like BitPay, then you're not concerned as you are paid in fiat (and the BitLicense stuff is BitPay's concern).

kelsey

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bitlicense is an oxymoron.

Elwar

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Viva Ut Vivas

S4VV4S

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Quote from: smoothie on August 14, 2015, 03:13:54 AM

what does the bitlicense actually offer bit coin accepting businesses that fit the bitlicense decsription?

Absolutely nothing but a price tag.

It's called a bribe. Not a license.

Legalized bribery is what it is.

Please excuse my ignorance, I did not follow up on this Bitlicense thing as it does not concern me.
But I need to ask this:
Does the Bitclicense apply to exchanges only or to ANY business accepting Bitcoin?
E.g: If a coffee shop accepts Bitcoin, do they need to apply for it?

Quote from: fairglu on August 14, 2015, 04:05:18 AM

Now multiply that figure by 50 for the 50 states, is they were to adopt a similar license, and by a few hundreds, if regional authorities across the world were to follow suit.

And of course you can expect local variations, making it even more expensive.

Hmm, that could mean that it is possible that the price of Bitcoin will rise too because of that.
Then again, maybe not.

Denker

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Quote from: fairglu on August 14, 2015, 04:05:18 AM

Now multiply that figure by 50 for the 50 states, is they were to adopt a similar license, and by a few hundreds, if regional authorities across the world were to follow suit.

And of course you can expect local variations, making it even more expensive.

That will not happen. New York is a special place because it's represents the old traditional financial regime. Similiar licenses might be made in a few other US states but in my opinion it is very unlikely that every state within the US will follow that move.
And even more unlikely it is that we will see several countries adopting that bullshit.
If so others will welcome these tech companies and take advantage of this technology and uncountable possibilities it has.
You can not stop this.

Denker

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Quote from: TheMage on August 14, 2015, 01:57:56 AM

Quote from: NorrisK on August 14, 2015, 01:33:47 AM

Quote from: TheMage on August 14, 2015, 01:00:30 AM

This is a ridiculous and draconian license that I for one will not be applying for.

It says it includes legal fees. Maybe bitstamp hired more expensive lawyers to take care of their and check if everything is in order?

I'm almost certain they have the capacity to do so. But for those of us who are start ups its a no brainer.

Just like any other existing laws, they favor those who can already "play the game". Crony capitalism at its finest.

Absolutely right. This is the whole reason of this license. That only a few who had been early in the game will have the possibility to be in that market. To push away new startups with innovative ideas and who can not raise that amount of money.
Furthermore it's way easier to control and subvert just a few companies and shape them over time to a cooperator of government and cartel of banks.

fairglu

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Now multiply that figure by 50 for the 50 states, is they were to adopt a similar license, and by a few hundreds, if regional authorities across the world were to follow suit.

And of course you can expect local variations, making it even more expensive.

lottery248

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beware of your keys.

this act will be the bait to the protest for economic freedom if their fiat failed.
if i had money to help doing appeal, i would try to overthrow this bit license.
i am not in NY though.

smoothie

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LEALANA Bitcoin Grim Reaper

what does the bitlicense actually offer bit coin accepting businesses that fit the bitlicense decsription?

Absolutely nothing but a price tag.

It's called a bribe. Not a license.

Legalized bribery is what it is.

Jace

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New York BitLicense is 2015's version of the Red Flag Law Undecided

tadakaluri

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The amount they charge is very high and unfair!!

TheMage

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Quote from: Amph on August 14, 2015, 02:20:47 AM

i believe this license use is primarily for money, it's so obvious, if the government can have money from something, he will do everything for make it happen

i'm glad that many exchange say fuck you and refused this crap, i only hope that not many other Gov will follow...

You think they are saying fuck you, but they really aren't.

Each business does a cost analysis, risk assessments, and "what if" (trade studies) analysis on these types of situations. If the benefits outweigh the negatives they will apply for it.

Honestly, do you really think they are giving the middle finger because they believe in it? No, most just cant afford it. The exception being shapeshift and im even skeptical with them considering I assume they have a large amount of business.

Amph

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i believe this license use is primarily for money, it's so obvious, if the government can have money from something, he will do everything for make it happen

i'm glad that many exchange say fuck you and refused this crap, i only hope that not many other Gov will follow...

TheMage

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Quote from: NorrisK on August 14, 2015, 01:33:47 AM

Quote from: TheMage on August 14, 2015, 01:00:30 AM

This is a ridiculous and draconian license that I for one will not be applying for.

It says it includes legal fees. Maybe bitstamp hired more expensive lawyers to take care of their and check if everything is in order?

I'm almost certain they have the capacity to do so. But for those of us who are start ups its a no brainer.

Just like any other existing laws, they favor those who can already "play the game". Crony capitalism at its finest.

NorrisK

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Quote from: TheMage on August 14, 2015, 01:00:30 AM

This is a ridiculous and draconian license that I for one will not be applying for.

It says it includes legal fees. Maybe bitstamp hired more expensive lawyers to take care of their and check if everything is in order?

Topic: The Real Cost of Applying for a New York BitLicense (Read 1683 times)