Transitional Licensing in New York

"Bitcoins, the most popular virtual currency, have drawn interest from entrepreneurs and investors including venture capitalists looking to popularize it as a low-cost alternative to established payment systems, supplanting credit cards to international wire transfers. Lawsky said when proposing the regulatory regime in July that he wants to protect people and root out wrongdoing without stifling innovation."

In an intriguing development, New York is considering granting "transitional licenses to small virtual-currency firms and startups to let them grow before facing the full burden of new regulation." In an emerging industry, it is important to stay on top of the regulations around it, especially before complex compliance measures are added.