The New York State Department of Financial Services (NYDFS) has proposed amending the rules for the issuance of licenses to crypto companies, Reuters has reported.
According to the amended requirements, companies will be able to receive limited licenses which will only be valid as long as they cooperate with companies that have a full license. The authors of the initiative said:
"We expect that an entity that seeks a Conditional License will endeavor to eventually seek and obtain a full BitLicense."
The NYDFS says the proposal aims to reduce the "actual or perceived hurdles" faced by cryptocurrency companies in obtaining a BitLicense to operate in the state. The regulator will accept comments on the initiative until August 10.
The BitLicense is considered the strictest legal framework in the crypto industry, as even though companies are licensed to operate in other jurisdictions, they are required to obtain this license in order to offer their services to New York residents.
Just 25 companies have so far obtained the BitLicense, including Tagomi, Circle and Robinhood.
The NYDFS recently announced it has simplified the process for licensed companies to list new coins. To do so, they will be provided with a list of pre-approved digital assets that licensed companies can add without requesting any additional permission.
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