The BitLicense, and Lightning

[NotATether]

So having a look here

https://medium.com/@UTXOalien/new-york-hates-the-bitcoin-lightning-network-d3c18715d85b

You can see that the BitLicense introduced by New York state is causing more problems than it is solving them.

First, companies do doing business in NY, and now, affecting those who provide services with LN. Most recently (and the subject of the above post) Coinbase not being able to provide LN wallets for NY users despite holding a BitLicense.

The thing is, New York state is not interested in changing the status quo. So it's looking like external change is required.

[SmartGold01]

Sorry to ask though was bit afraid of clicking the link provided, but was coinbase affiliated with bitlicense? And was the lightning already implemented on coinbase just as it's already done in Binance but I hardly see people using it so I don't know if they are there to be used in future or not.

[Yamane_Keto]

If New Yorkers are allowed to use noncustodial lightning, that's good for small businesses, shops and individuals, but it's strange that New York's laws are out of step with global financial changes.

[Faisal2202]

The thing is, New York state is not interested in changing the status quo. So it's looking like external change is required.

It's surprising that BitLicense, established in 2014, still impacts new technologies today. This regulation creates an unfair scenario for New Yorkers, as custodial platforms may not offer certain services. However, they can still access these services through non-custodial platforms. It's almost impossible to prevent someone from using the Lightning Network (LN) via the internet. If financial or centralized apps don't support LN, users can simply opt not to use those apps.

Allowing the use of LN would indeed simplify things. It's disappointing that New Yorkers can't use LN on Coinbase. This issue might even warrant a movement to advocate for change.

If New Yorkers are allowed to use noncustodial lightning, that's good for small businesses, shops and individuals, but it's strange that New York's laws are out of step with global financial changes.

Yeah, if they can use non-custodial then they can opt to use it instead and leave the custodial but things will become easier for the custodial users. What damage LN can cause to NY only and can't harm the other world?

[NotATether]

Sorry to ask though was bit afraid of clicking the link provided, but was coinbase affiliated with bitlicense? And was the lightning already implemented on coinbase just as it's already done in Binance but I hardly see people using it so I don't know if they are there to be used in future or not.

No the Bitlicense is not a technology or company, it is a regulation introduced by New York state 10 years ago.

It aims to severely restrict who can operate a Bitcoin business in New York because they think it will stop scams.

Although now we can see it has largely been a failure, and has just resulted in exchanges and other companies supporting the rest of USA while the frauds that do want in like FTX US find a way in.