Bitcoin company sues New York Department of Financial Services over illegal BitLicense

Over the past few years, those who have been closely following the development of the cryptocurrency field must have known about the existence of BitLicense . Last year, the New York Department of Financial Services (NYDFS) announced that it would use BitLicense to manage the development of the state's digital currency industry. This decision really shocked the entire cryptocurrency market. Once the rules on BitLicense come into effect, Bitcoin companies in New York State will either choose to comply with the relevant rules and apply for a license, or leave New York.

So far, there has been no question about the basis for the implementation or the validity of the BitLicense. Theo Chino is the founder of a Bitcoin company in New York State. When the NYDFS rejected his BitLicense application, he was determined to "get to the bottom of it." According to the NYDFS, his company did not fall into the category of digital currency operations. Therefore, due to pressure from the regulator, Chino's company had to close down.

Chino filed a lawsuit against NYDFS and its director Anthony J Albanese, both to seek justice and to protect the interests of Bitcoiners. Currently, the lawsuit has been filed in the New York Supreme Court Case No. 78. In the lawsuit, Chino accused NYDFS of excessive regulation and being too arbitrary in issuing BitLicenses.

The complaint states:

NYDFS has been overbearing and inappropriate in regulating the virtual currency industry, treating bitcoiners as mere "experimental subjects."

Chino believes that the BitLicense rules issued by NYDFS have completely exceeded their legal authority, thus causing personal losses to American citizens and forcing Bitcoin technology companies to move out of New York. In addition, Chino also provided very strong evidence: Benjamin Lawsky, the former director of NYDFS, the initiator of BitLicense, admitted that the introduction of this regulation was to test whether unauthorized regulatory power could become the traditional management method of financial institutions. In short, the emergence of BitLicense was not due to objective needs, but was imposed by NYDFS subjectively.

Chino said in an interview:

It is shocking that the former director admitted that BitLicense used the Bitcoin community as an "experiment" that would eventually be used for new banking regulations, and NYDFS did not obtain legal authorization from relevant agencies. For Mr. Lawsky, this may be a game, but his inappropriate behavior has serious consequences. Because of the BitLicense he initiated, my company was forced to stop operating. Therefore, I chose to seek help from the judicial authorities. I want to tell these regulators that they have no right to play with people's lives and property and stop treating us as toys.

I believe the entire cryptocurrency and financial community will be closely following the progress of this case.