The New York State Supreme Court has approved a motion to dismiss a longstanding lawsuit that sought to reverse a technology-specific regulatory regime, which targeted cryptocurrency.
Former bitcoin entrepreneur Theo Chino sued the New York State Department of Financial Services (NYDFS) in October of 2015 over the laws, which are often referred to as the “BitLicense.”
Officially launched in June 2015, the policy mandates bitcoin-related companies that reside in the state to apply for a license to operate.
Chino alleged the agency of over-regulating the bitcoin industry through its laws.
He claimed the restrictions it slapped on overstepped its ability to regulate companies using the technology.
He added that NYDFS’s regulations forced him to close his own business.
After a delay on a decision, the court granted the defendant’s motion for dismissal, and threw out the one-man fight that sought to overturn a state-wide introduced law.
In a statement, Chino’s legal representation said that while the court decided Chino has no foot to stand on to challenge the BitLicense rule, he has already filed an appeal to the New York State Supreme Court.
It further stated:
“Obviously, our client disagrees with this conclusion, since it would mean that, for all practical purposes, no business located in New York or in another state would have access to the court system to challenge this regulation, and possibly other regulations promulgated by NYDFS.”
The dispute comes from the controversy that arrived with the introduction of BitLicense.
Entrepreneurs lamented that the license had too many regulations, as well as imposed high compliance costs.
In addition to the $5,000 non-refundable application fee for the BitLicense, legal fees and time allocation could lead to expenditure amounting to several thousand dollars.
Cryptocurrency exchange Bitstamp, for example, estimated at the time that one company could spend up to $100,000.
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