The New York Department of Financial Services has announced that it will extend the period for commenting on its BitLicense proposal by another 45 days.
The commenting deadline will now be on October 21st.
The NYDFS aims to bear down on bitcoin and related digital currencies, but the extension may be a sign that regulators are taking into consideration the many valid concerns that digital currency businesses and consumers are raising.
In the proposal, the NYDFS explains their reasoning behind the issuance of so-called “BitLicenses” for compliant bitcoin businesses, which include anti-money laundering, Know-Your-Customer, and consumer protection requirements.
BitLicenses would mainly target New York-based exchanges and companies that hold bitcoins tied to their customers.
There has been backlash from many in the bitcoin community including the Bitcoin Foundation, which sent a letter to NYDFS’ superintendent, Benjamin Lawsky requesting for an extension to the commenting period.
The BitLicense rules, if put into effect, could have a far-reaching impact on the future of digital currency regulation domestic and abroad.
Digital currency startups decry the heavy burden the proposal places on compliance, a burden that is frankly impossible to carry for most startup businesses.
The proposal itself seems to be aimed at applying existing regulations for financial institutions to digital currencies, and the NYDFS appears to be mindful of the many challenges that this poses.