CoinBase targeted the New York based Bitcoin regulatory framework again for their faulty policies. Only a few weeks left to its conclusion, the California based Coinbased reminded its counterparts that there are a lot of flaws which are yet to be addressed. They believe that if the issues were passed in its existing form, it will smother the innovation and threaten the consumers as well as the businesses present in New York.
Duplicity of Bitcoin License and Policies
Coinbase put forth the apprehension on behalf of the new start-ups and blamed NYDFS for lobbying laws that will obstruct the new companies due to weak and shaky regulations. The firm also explained that trading companies and Bitcoin wallets are already lawfully allowed to obtain Money-Transmitter–License. They believe that with existing regulations in place, there is no need for BitLicense as it only adds an extra and redundant layer that will impact the movement of the companies and industry as a whole. It is also demanding that the AML reporting should be abolished as such a law already exists at the Federal level.
Restrictions on Launch of New Features
The final draft of BitLicense will impose a restriction on Bitcoin companies to launch new features or updates without the approval of NYDFS. Conibase, on the other hand, is debating these restrictions with the authorities and calling them invalid.
They say that it is unfair for the new companies to wait for a long period of time to get sanctions on new services and products. Instead, they could create a system where the authorities are alerted about the upgrade. However, permissions seem downright illogical, according to Coinbase.
Coinbase requesting Unofficial Commenting
The commenting periods are long over but Coinbase urges the Bitcoin community to voice out their concerns to Benjamin Lawsky, NYDFS superintendent by using his twitter handle @BenLawsky. Coinbase is not sure if the authorities will pay any attention to the unofficial requests and comments or if they will be addressed at all. However, before the final launch of BitLicense, it is important that the apprehensions and concerns reach the floor.
The regulatory body needs to be informed about the possible flaws and the inconveniences that their policies will cause to the industry and community. These issues must be addressed before it becomes final law.