The State of New York has converted Digital Rights –using Bitcoin, “virtual”-digital currencies and Block-chain technology– into a privilege with a License for a Fee. The New York Department of Financial Services called it a BitLicense and is “required” for all businesses transacting Virtual Currencies like a bank.
The goal is to “regulate bitcoin and virtual currencies.” However, there is nothing “legal” about virtual currencies. Digital Currencies are entirely NON-LEGAL and only LAWFUL. The NY-DFS has been sneaky about it too:
A business must obtain a BitLicense if it engages in virtual currency business activity involving New York State or persons that reside, are located, have a place of business, or are conducting business in New York.
Frost estimated the [BitLicense] application cost Bitstamp roughly $100,000, including time allocation, legal and compliance fees.