The New York Department of Financial Services (DFS) released its first legislation on Bitcoin regulation, the BitLicense regulatory framework, in 2015. The regulation stated that any businesses or individuals that live or undertake any business dealing in New York are legally required to reply for the BitLicense, without exception.

The BitLicense demands that businesses follow a number of requirements in regards to privacy, anti-fraud and anti-money laundering.

Reporters note that several business owners within New York criticise the vague instructions and requirements demanded by the regulations. As such, many feel pushed to either skirt around the law, break the law outright, or avoid doing business in the city all together.

Several businesses who deal extensively in cryptocurrency have already left New York in response to the legal demands. Currently only 4% of businesses operating in New York have applied for and received a BitLicense, suggesting that many businesses may potentially be choosing to avoid complying with the law.

Theo Chino, who owned a business that utilised Bitcoin, sued the New York State DFS in October 2015 over the rule, arguing that it sought to over-regulate the community. While the company was unsuccessful in the case, their response highlights the unease and rebellion felt by many businesses within the city, and is reflective of the wider struggles and tension between regulators and the Bitcoin community.