New York's financial regulator is preparing to remove a number of regulatory hurdles impeding the development of cryptocurrency businesses in the US state.

Virtual currency firms wanting to conduct business in New York currently have to apply for a BitLicence, which can take years to process.

Under the new regime, firms will be able to apply under a new 'conditional licensing framework' that makes it easier for start-ups to enter the New York market by piggy-backing on the licences already authorised by DFS.

Superintendent Linda Lacewell, says: “The DFS actions announced today in consultation with numerous industry participants and the public will boost responsible innovation and help get New York’s economy back on its feet. DFS is proud to foster accessibility and will continue to blaze a trail in the virtual currency marketplace.”

As part of the initiative, the financial regulator has signed an MoU with State University of New York (Suny) to launch a new Suny-related virtual currency program, under which participating startups will also be able to apply for a conditional licence. Once licensed by DFS, Suny Block will be able to support nascent virtual currency entities from local communities, including those started or run by students or alumni.

In addition, the DFS is to provide firms with a list of approved coins for use in virtual currency projects.

says Lacewell: “This MoU with Suny is a strategic step to diversify and deepen the next wave of innovators in the virtual currency space in New York.”