Lawsuit To Eliminate BitLicense Goes To NYC Court Of Appeals

The Attorney Pierre Ciric and Theo Chino have filed a lawsuit to eliminate BitLicense since its enactment and they are now going up the ladder and taking their case to the New York Court Of Appeals, the highest court in the New York State as we are about to read in the coming altcoin news.

BitLicense was the first virtual currency regulatory framework which was enacted in the United States. The New York Department of Financial Services issued the regulatory framework and according to the document it requires that the businesses who transact virtual currencies must be licensed to operate with the New York customers. The companies and the individuals are now prohibited from engaging in activities that involve cryptocurrencies in New York or serving in the New York State residents without the license.

BitLicense is a decent response to risks posed by the rise of the number one cryptocurrency-Bitcoin and some of the other cryptocurrencies and according to NYSDFS, ‘’BitLicense provides key consumer protection, anti-money laundering, cybersecurity rules to help safeguard customer funds and root out an illicit activity.’’ For many traders, the controversial regulatory framework is ‘’overreach.’’ The article published on the Fordham Journal of Corporate & Financial Law explains:

 “The BitLicense requires that records be kept for up to seven years of every cryptocurrency transaction carried out by a company. Sensitive information, such as the physical addresses, bank statements, and names of customers who are parties to that transaction, must also be recorded and be made available to the NYSDFS upon request. A large part of the ethos surrounding cryptocurrencies is a desire for privacy and freedom from intrusive government regulation, and many cryptocurrency advocates felt that complying with the BitLicense would be a betrayal of their fundamental values.”

Theo Chino filed article 78 as a lawsuit to eliminate Bitlicense and article 78 proceeding of the New York Civil Practice Laws and Rules allow the individuals to challenge the activities of the court to eliminate regulation. One of the attorney’s of Theo Chino main arguments is that the regulator is the only one that can regulate. The NYDFS is not entitled to ‘’invent’’ regulation and as we can read in the latest cryptocurrency news:

 “DFS, of its own initiative, and without the New York State Legislature’s mandate or instructions, adopted a regulatory scheme (commonly called the ‘BitLicense’) to quash the growth of cryptocurrency-based businesses in New York.”