Regulating with BitLicense
In different countries, different regulations are applied. Some countries do not apply bitcoin regulations. They see many benefits of using bitcoin. By using digital currency in stores, the central authority or government know by accepting payment from other countries. Because bitcoin is decentralized, people will start their online ecommerce store that will increase the economy’s growth, especially in developing countries.
But in some countries, regulations are strictly applied by the government because they know, bitcoin does not involve any third party like government, banks and other financial institution, if there is no involvement of any third party it means no tax, so government do not want to accept this digital currency, and they want their revenue source. That is why they restrict bitcoin in their country and hardly if they get, they want to apply strict regulations on it for tax purpose.
The bitcoin working will be adversely affected by applying the existing financial regulations to the bitcoin, and the essential part that is in the NewYork state is BitLicense. BitLicense is a regulation that the New York’s Governor issues, and it is mandatory to all the bitcoin companies that are providing bitcoin services.
The guidelines of BitLicense is to provide the customer’s information that is registered on the bitcoin companies or customers that are using the service of bitcoin companies to the new York state government. Some companies are providing privacy to their customers. Still, they have to obey the rules of New York’s government for survival because it is under the regulation of bitcoin.
If any companies are providing services to their customers by protecting customers’ privacy or that companies that are not providing the data to the New York government will be suspended or banned in the New York. Some bitcoin companies are broken due to not following the rules and regulation of Bitlicense of the New York government.
According to the New York state government, companies will apply for BitLicense regulations, which is compulsory to every company that is providing bitcoin services will charge 5000 dollars that are not refundable. There is no guarantee for the successful submission of Bitlicense. It will increase upto 20,000 dollars, and the most significant limitation of applying to Bitlicense is that the companies will be forced to disclose the customer’s detail and the business plan and model of the bitcoin company to the New York state government.
It is good to legitimate the bitcoin currency because it is a digital currency. Many people use bitcoin for illegal purposes like purchasing illicit goods and services and many types of frauds that will be happened and maybe damageable for the state or country. Bitlicense is a good decision of New York state. Still, some companies providing the bitcoin service and have a big plan for the future and do not want to share their information. Still, by regulating Bitlicense, they have to disclose their plan and customer’s information, and if they do not work under the regulation, they will be suspended by the government.
Some bitcoin companies do not want to invest money, small companies or startups, because the fees are high and non-refundable. There is no guarantee for successfully getting the Bitlicense after paying the fees. It is astringent law and maybe affect the limit of using digital currency in New York State.
Bitcoin regulation in other countries
On the other hand, in different countries, regulations may be various. The Netherland and Finland declared capital gain that would be applied on bitcoin for each transaction. On the other hand, Asian countries tried to exclude the third parties in the bitcoin that are charging fees for providing their services, and they are earning money by collecting fees from each transaction, and if you also want to make money, then go with crypto comeback pro
From the above information, we have learned that different countries use different regulations. In the other state, there may be additional regulations regarding bitcoin uses. In New York state, Rules are stringent. New York state government applied the bitcoin regulation by Bitlicense, which is compulsory for every bitcoin company. They have to use Bitlicense to charge a high amount of money and ask for the business model and customer information. So in different countries, rules and regulation may be additional.