New York State Comptroller Thomas DiNapoli has raised concerns over the New York Department of Financial Services' (NYDFS) management of BitLicense, the regulatory framework for digital currency businesses in the state. DiNapoli's January report on digital currency licensing expressed only limited confidence in NYDFS's ability to oversee BitLicense effectively. The investigation revealed gaps in security checks for licensees, such as incomplete fingerprinting processes and failure to verify tax obligations or net worth documentation. Moreover, there were significant delays in conducting biennial examinations of licensee businesses. DiNapoli has recommended establishing formal procedures for follow-up examinations. The NYDFS acknowledged the need for improvement and has begun implementing a BitLicense Examination Findings Tracking Procedure. However, the Comptroller noted that this was only provided for one of the eight licensees sampled. Currently, 32 entities, including major firms like BitPay and Coinbase, hold a BitLicense in New York.
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