Overview
American Banker quoted Steptoe partner Jason Weinstein in a September 3 article titled “The Hidden Danger of Applying for a BitLicense.” The article discusses the first wave of virtual currency firms that submitted BitLicense applications to the New York Department of Financial Services. According to the article, the application asks whether a company has engaged in virtual currency activity in other states without a license, stoking fear that firms which do apply could be exposed to future regulatory or legal action.
Mr. Weinstein is a member of the strategic advisory board of BitFury and serves on the advisory board of the Chamber of Digital Commerce. He says: "You might be operating in a state that you don't think there is a licensing regime that applies to you and a year later the regulator decides it did. If there does come a time when a regulator starts knocking on your door, you are going to want to point to the things you did in good faith to establish yourself as a compliant company, like talking to counsel."
The full article can be read at American Banker (subscription required).