Why You Shouldn't Fear the Blockchain Regulators

In 2015, New York became one of the first jurisdictions in the world to adopt a regulatory regime for cryptocurrencies.

"We want to promote and support companies that use new, emerging technologies to build better financial companies," said then-New York Superintendent of Financial Services Ben Lawsky, when announcing the rules.

Three years after the Great Bitcoin Exodus, the crypto-native exchanges have not rejoined the New York startup scene.

R3, the financial industry distributed ledger consortium with over $100 million in funding, is headquartered in New York.

Pillars of Wall Street such as Goldman Sachs, JPMorgan, and the parent company of the New York Stock Exchange are getting into the action.

Blockstack, a high-profile startup hoping to build "a new internet for decentralized apps" on blockchain foundations, is located in New York as well.

The New York bitcoin and ethereum meetup groups each have over five thousand members.

The BitLicense, for all its flaws, did not kill off cryptocurrency activity in New York.

The voice over internet protocol startups springing up to provide services were not subject to the pricing, universal service contribution, consumer protection, emergency services, and other requirements that traditional phone companies faced.

At the same time, real-time voice and video messaging on services such as Skype, Facetime, and WhatsApp has been a hotbed of innovation and adoption, with offerings that look very different than traditional phone service.