The thriving blockchain industry has made it all the more attractive to get involved in the cryptocurrency business. Apart from the mainstream adoption of digital currency transactions, the boom of Bitcoin has made everyone realize how lucrative crypto can be, and if you’re looking into breaking into the scene, your best bet is to start your venture in New York.
It’s no secret that the Empire State is brimming with opportunities to generate revenue, but if you’re particularly interested in cryptocurrency, New York is fertile ground for business. Here’s why:
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New York was previously one of the states that were most skeptical of digital currencies, but regulators have recently proposed new licensing rules that would make it much easier for companies to engage in cryptocurrency business in the state. Reuters reports that the initiative was brought about by how challenging it is to obtain a BitLicense, a business license of virtual currency activities issued by the New York State Department of Financial Services to companies.
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Getting this license often involves a years-long process, and since its inception in 2015, only 25 companies had been granted currency licenses and charters. The proposed framework allows companies that want to engage in cryptocurrency business activity in New York to procure a conditional license, through which they would collaborate with fully licensed companies. It would also make it easier for them to offer and use new coins without having to get additional approval.
Additionally, the New York State Department of Financial Services released a Greenlist in August that catalogues 10 cryptocurrencies for custody, and another eight for listing. Licensed entities are allowed to use the coins, so long as the purpose is approved. The cryptocurrencies include Binance USD, Bitcoin, Ethereum, Gemini Dollar, and Litecoin. Crypto companies can create a so-called “coin-listing or adoption policy” that is tailored to their business model and risk profile. If they are approved by the DFS, they would be able to “self-certify the listing or adoption of new coins in addition to those on the Greenlist, without any further approval from DFS.”
The new framework and Greenlist would undoubtedly become a game changer for crypto startups to thrive in New York. It will also make way for new crypto innovation this year and beyond.
Ease of investing and starting a company
States like Colorado are often lauded for being crypto-friendly and more open to new businesses, but New York is fast catching up. And one reason for this is the easy and straightforward process of starting an LLC (Limited Liability Company) in NY, which many of the top blockchain and crypto companies in New York are.
The ease of setting up this type of company is shown in this guide to setting up an LLC in New York. The guide outlines the process in six straightforward steps: naming your LLC, appointing a registered agent, filing Articles of Organization, creating an operating agreement that outlines your rules and operating procedures, applying for an EIN, and meeting the New York publication requirement so you can receive an affidavit of publication. These straightforward steps have allowed blockchain and crypto companies to get a foothold in the city.
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Growing number of successful companies
The hurdle that is the BitLicense didn’t stop companies from thriving in New York City. For example, ShelterZoom is a startup that introduced technology that enables real estate transactions to be done via blockchain. Their innovation turned garnered much recognition, to the point that they were granted the Company of the Year Blockchain award from CIO Applications. They were also the first firm to take home the SIIA CODiE Award for Best Emerging Technology.
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Another New York-based startup that has enjoyed success in the blockchain space is Coverus, a company that utilizes its technology not only to protect data, but also to allow subscribers to turn their medical information into cryptocurrency. The firm’s app lets users share their information with medical companies in exchange for currency, a feature benefiting families who are struggling with medical bills.
With the more lenient rules surrounding crypto and the ease of starting a company in New York, it’s only a matter of time until the Big Apple’s cryptocurrency scene balloons even further.