Theo Chino will be back in court tomorrow (October 10) regarding his ongoing battle with the New York Department of Financial Services (NYDFS). In brief, Chino is battling the DFS creation of the “BitLicense Regulatory Framework” that delivered a bumpy process to license virtual currency business activity in the state of New York. When the complaint was filed a few years back, Chino initially sought $1 billion dollars in damages. Chino has battled the rule as governmental overreach arguing that the DFS exceeded its regulatory mandate and that regulating Bitcoin lies with the legislature, not with the agency.
Tuesday’s hearing will address two motions: a motion to dismiss filed by NYDFS, and a discovery motion filed by Chino. The big question is whether Chino can sue the government, a bit of a heavy lift. Chino has documented the saga here.
The Bitcoin Foundation has supported Chino’s lawsuit stating:
“It’s important to show support for Theo Chino’s case as it will help send the message that the Bitcoin community is frustrated with the Government’s efforts to stifle innovation in New York. Further details on how to support Theo can be found here.”
The BitLicense has understandably pushed virtual currency businesses away from New York due to its apparently arbitrary application, which may have been the intent to begin with. DFS has earned a reputation for being rather anti-innovation when it comes to Fintech. Coin Telegraph reported last year that the intent of creating the BitLicense was to have the “Bitcoin community as “guinea pigs” to test new rules for the banks.”