Only businesses that hold customer funds will need a so-called a “bitlicense”. These regulations make New York the first state to introduce oversight for digital currency. The rules only apply to companies that do business in the state.
Software developers will be excluded from the new rules, even though they may create programs that could be used to handle virtual currency. The regulations also will not apply to consumers, currency miners and businesses that accept virtual currencies as payment.
The new rules will not require virtual currency businesses to inform the state when minor changes are made to software and apps. The state only needs to approve material changes that affect a company’s business model or products.
Companies that obtain a license must appoint a chief information security officer (CISO) who will present an annual security report to the firm’s executives. A cybersecurity policy must be developed that addresses areas like customer data privacy, network security and information security, among other topics. Other security measures that license holders need to implement are the ability to detect data breaches and malware and how to restore operations after an attack.
Digital currency businesses must apply for a license within 45 days after the regulation goes in the effect, a date that has not yet been determined.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now