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IdentityMind Global™ Advises on BitLicense Compliance


IdentityMind Global™ Advises on BitLicense Compliance


When the New York Department of Financial Services (NYDFS) released the final draft of BitLicense, the community worried about Bitcoin companies having trouble complying with the law. Digital currency administrators, exchanges, and traders have 45 days to apply for BitLicense; however, many of them might not be able to meet the requirements of BitLicense. In such situations, IdentityMind Global™ may help companies by providing a BitLicense compliance management platform.

Also read: The Final BitLicense: Revisions and Reactions from the Industry

AsBTC_NYDFS the latest anti- money laundering requirements put forward by the New York Department of Financial Services (NYDFS) for virtual currencies in the BitLicense rules and regulation have to be complied with by the companies operating in NY, IdentityMind Global has brought in risk management platform to help them. The company claims that it provides the transaction monitoring, customer identification, and reporting capabilities to help digital currency administrators, exchanges, and traders comply with the rules and regulations from NYDFS.

The leading provider of risk management and payments solutions, IdentityMind Global™ with its solution that provides all the Anti- Money Laundering capabilities required to comply with BitLicense requirements is expected to help companies who have customers in New York, or who are physically located in the state must submit the application for a BitLicense. The issuing of the license requires strong Anti-Money Laundering capabilities, including transaction monitoring and risk-based Know Your Customer (KYC) from the companies operating in the state.

Industry-leading compliance solution Meets BitLicense Requirements

The company provides risk management and regulatory compliance solutions for the financial and digital commerce ecosystem where ‘Fraud Prevention and Risk Management Platform’ helps financial institutions and online merchants with real-time capabilities to effectively address the operational challenges of conducting online financial and payment transactions. Elaborating the features Garrett Gafke, IdentityMind Global CEO and President, said:

We are reassured that our industry-leading compliance solution meets all the transaction monitoring and risk-based KYC requirements stated in the New York BitLicense. We can safely say to all our clients and the industry overall that by using our platform they have the technology to cost- effectively comply and operate in New York. We continue to support the virtual currency industry both domestic and international.

What Clients Get from IdentityMind Global’s BitLicense?

Transaction Monitoring

  • Full transaction monitoring (amount, date, time, payment instructions, fees and charges, names, account numbers, physical addresses).
  • Monitoring and real-time alerting for suspicious activity (money laundering, or other illegal or criminal activity).
  • Maintaining records to demonstrate compliance with applicable state and federal anti-money laundering laws, rules, and regulations for at least seven years.
  • Easy filing of Suspicious Activity Reports (“SARs”) in accordance with applicable federal laws, rules, and regulations.
  • Ability to flag or reject specific or impermissible transactions.
  • Regulatory Requirements for Virtual Currency to Virtual Currency transactions

Customer Identification Program (CIP):

  • Identity verification to a reasonable/practical extent including for unbanked and underbanked users.
  • Customer screening against the Office of Foreign Asset Control (OFAC) list, Politically Exposed People (PEP) list, and many other sanctions lists.
  • Early Viewing- Embargo on release before 8 AM EST 6/10/15
  • Enhanced Due Diligence for high-risk customers, high-volume accounts, foreign entities, or accounts where a SAR has been filed.
  • Prohibition on accounts with foreign shell entities.
  • Identification capabilities for transactions with a value greater than $3,000.

Bitcoin Regulations NY Bitoicnist

Useful Information for Bitcoin Companies in NY

IdentityMind Global™ answers some questions that are being asked by Bitcoin companies whether they are subject to the BitLicense. The company informs that the BitLicense applies to the business/person if:

  • It is trading digital currency as a business; however, if someone is trading digital currency for personal investment purposes, the new regulation does not apply;
  • Someone controls, administers, or issues a virtual currency;
  • Anyone who creates their own virtual currency
  • It is an exchange, assisting others in buying or selling virtual currency;
  • Buying and selling Virtual Currency as a customer business, this includes business models like;
  • Storing, holding, or maintaining custody or control of Virtual Currency on behalf of others;

Last but the most important, if the company/individual has clients in New York; however, this can be avoided by rejecting the customers from NY.

IdentityMind Global™ promises to help Bitcoin companies avoid operating in New York, or have not yet acquired/file for a New York BitLicense with its platform where they can do location monitoring and Geofencing services. With the solution the companies will be able to block users affected by the New York State requirements. However, it also recommends that if some Bitcoin company’s business is affected, and it plans to continue operations in New York, it should seek legal counsel to proceed correctly.


Image source: PixaBay, NYDFS

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