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Coinbase just announced that it has received the BitLicense from the State of New York. The BitLicense is a special business license governing activities associated with virtual currencies which officially authorizes Coinbase to continue to operate in New York. This appears to be a validation by the New York State government that they are willing to license and regulate cryptocurrency companies.

The intersection of Blockchain technology and government regulation is still developing. Blockchain technology enables unprecedented individual freedom, as President Obama said “everybody is walking around with a Swiss Bank account in their pocket.”. Governments have an interest in regulating virtual currencies, but do not want to discourage innovation or deny economic opportunities created by Blockchain transactions and companies.

We need to come up with a governance model that makes sense in the decentralized economy and it’s up to us to determine the nature of the relationship between government and the Blockchain.

Coinbase announcement on Medium

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