Ex-Regulator and BitLicense Creator Helps Blockchain Firms After All

The new private office of the formally most active bitcoin regulator in America, Benjamin Lawsky, is now working for Axoni - a firm creating Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term solutions for the big banks. The Lawsky Group was the press contact for Axoni when it announced the completion of its distributed ledger test with Bank of America Merrill Lynch, Citi, Credit Suisse and J.P. Morgan last week.

The former superintendent of the New York Department of Financial Services (NYDFS) faced criticism when he departed NYDFS last June. Some had alleged that Lawsky built for himself a “revolving door” in first creating the BitLicense regulations, which govern how virtual currency businesses operate in New York State, and then leaving to form his own private legal practice. Some suspected that he will advise businesses on how to get licensed according to the rules he created. Lawsky responded that he is barred from advising on such matters and will refrain from doing so.

Lawsky, who took a tough line with banks during his tenure at NYDFS - earning himself the nickname of “Sheriff of Wall Street” - has been criticized by the digital currency industry for what they believe to be excessively burdensome regulations. Taking a different route than most states considering Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, the BitLicense rules add additional requirements specific to cryptocurrency, over and above the standard money transmission rules that have been adopted. Industry players expressed concern that the rules will stifle progress and innovation.

Some have further accused Lawsky of deliberately engaging in a conflict of interest. They allege that Lawsky knowingly created tough rules in order to advise on how to navigate them later on.

"We'll be doing a broad range of financial consultancy ... and some financial technology public relations," Lawsky Group spokesman Matthew Anderson was quoted by Reuters as saying on Wednesday. Anderson was also the spokesman of the NYDFS under Lawsky.