New York's Financial Regulator Is Reviewing the Controversial BitLicense

The New York Department of Financial Services is revisiting its controversial virtual currency license, the regulator's head said Tuesday.

Speaking at Georgetown University's Institute of International Economic Law during DC Fintech Week, NYDFS Superintendent Linda Lacewell said the agency was looking into the BitLicense, which requires any companies conducting cryptocurrency transactions with New York residents to be licensed to operate within the state - even if the companies are based elsewhere.

Kraken, an exchange headquartered in San Francisco, chose to leave New York rather than comply.

The Seattle-based Bittrex exchange was forced out of New York earlier this year after failing to secure a BitLicense.

Speaking to the media after her talk, Lacewell said the regulator is comparing the cryptocurrency industry when the BitLicense was first implemented in 2015 and how it has evolved since then.

"How has the industry grown? Has it matured in any way? And I don't want to get too specific, but you know, it's a good time for a second look," Lacewell said.

Lacewell said NYDFS wants to hear from industry participants to see what improvements, if any, the agency could implement.

Since first being introduced by previous NYDFS Superintendent Benjamin Lawsky, the state financial regulator has issued more than 20 licenses and a few trust charters, allowing exchanges, bitcoin mining firms, bitcoin teller machine startups and custodians the ability to store and transact cryptocurrencies in the Empire State.

Lacewell did not say when the regulator's review of the license would be completed, or what specifically industry participants can expect to see at the close.

"With any new and emerging industry, it's good to take a close look and see if there's any aspect maybe [where] there's something we need to add."