In 2013, cryptocurrency investors, enthusiasts, financial regulators and the crypto community witnessed the largest bitcoin exchange in the world, Mt. Gox, collapse. New York regulators decided they needed to step in and ensure that kind of thing did not happen in their state. Two years later, the New York State Department of Financial Services (NYDFS) issued its final BitLicense regulations with respect to virtual currency transactions. Since then, NYDFS has granted over 10 BitLicenses to some major virtual currency businesses in recent years.
In general, companies engaging in digital assets, including crypto and tokens, activities involving New York State or persons that reside, are located, have a place of business or conducting business in New York, are required to obtain a BitLicense from NYDFS.