BitLicense in San Francisco

BitLicense in San Francisco

With cryptocurrency on the rise, it’s important for companies to understand the implications that surround trading it. The New York State Department of Financial Services created BitLicense in 2015 as a measure to help regulate cryptocurrency exchange and combat cybercrimes. According to the New York Department of Financial Services, you need to apply for a BitLicense to conduct business using virtual currency in the state. The professionals at Bates Group, LLC can help you understand whether the cryptocurrency operations of your company in San Francisco are affected by current BitLicense regulation.

Understanding Cryptocurrency and Cybercrime

Cryptocurrency is a type of virtual currency that is based on blockchain technology, which Investopedia describes as “a distributed ledger enforced by a disparate network of computers.” Cryptocurrency is not issued by any type of central authority, and because it is difficult to track, it has been known for being used as a method to commit crimes like money laundering or financing terrorism. 

Cryptocurrency is a relatively new technology, and it is one that has come with some controversy. Cryptocurrencies are commonly criticized for their tendency to be volatile in price, and because they are associated with criminal activity. However, cryptocurrencies also do not require third parties to trade and many people think of them as an investment that has the potential to grow in value. (Note that the often high volatility of cryptocurrencies’ value introduces an added layer of risk.)

What is BitLicense?

BitLicense adds measures to regulate cryptocurrency exchange in New York by requiring that businesses apply for approval with the state and meet a number of requirements, including the implementation of an Anti-Money Laundering (AML) program. Like many other AML requirements, BitLicense requires businesses to monitor suspicious activities and report especially large transactions. If your company is required to meet BitLicense’s requirements, you can discuss your AML program with us to ensure that you are up to date on the most recent compliance standards. 

Other requirements set out by BitLicense include but are not limited to submitting regular financial statements, maintaining a cybersecurity program to safeguard data, and even developing a Business Continuity Plan.

Training Employees on AML Compliance

Once your company’s policies are compliant with current BitLicense requirements, you will have to train your employees on the measures necessary to continue following regulation. Bates Group, LLC offers AML training that is specific to operations in cryptocurrency. As employees come and go and compliance requirements change, our services can help you keep everyone in your company up to date on important policies.

Compliance Program Training and Development with Bates Group, LLC

When developing a compliance program for businesses dealing in cryptocurrency, it’s important to make sure that your policies are up to date. Bates Group, LLC specializes in helping companies develop compliance programs that meet current regulations, including the standards set forth by BitLicense. Contact us today to learn more about our services and how we can help your San Francisco business with cryptocurrency regulation.