November 16, 2019 Wyoming Division of Banking official suggest the state’s cryptocurrency laws may allow firms to operate legally in New York without a BitLicense.

At a CoinDesk-sponsored event in New York, Chris Land, general counsel for the WDB, pointed to legal loopholes through which crypto firms may be able to bypass NYDFS’ BitLicense. Under cryptocurrency laws passed earlier this year by Wyoming’ legislature, virtual asset service providers and custodians may register as Special Purpose Depository Institutions (SPDIs), which are legally considered state-chartered banks. Notably, U.S. federal law extends to state-charted banks—and thus, SDPIs—the same rights extended to national banks, including license to operate in a set of 42 states including New York. Further, New York, itself, allows any entity considered a national bank to provide digital asset service in the state without obtaining a BitLicense.