Best Fintech Lawyers in New York City

New York has strengthened data security requirements to protect consumer information across fintech services.

Source: NYDFS cybersecurity overview; NYAG SHIELD Act resources

Source: NY Department of Financial Services - Cybersecurity Regulation (23 NYCRR 500)

Source: New York Attorney General - SHIELD Act

Frequently Asked Questions

What is BitLicense and when do I need it?

BitLicense is New York State's license for virtual currency businesses. You generally need it if you operate a crypto exchange, wallet, or other service involving New York resident transactions. An attorney can assess your activities and file the necessary application with NYDFS.

How do I apply for a BitLicense in NYC?

A qualified attorney can guide you through the application, compile financial disclosures, security controls, and compliance programs. The process typically requires thorough business and technology due diligence, plus ongoing regulatory reporting after approval.

What is the SHIELD Act and does it apply to my fintech firm?

The SHIELD Act expands data security duties for businesses handling New York resident data. If your fintech platform stores or processes personal information, you must implement reasonable safeguards and follow breach notification procedures.

What are 23 NYCRR 500 requirements for cybersecurity?

23 NYCRR 500 mandates a formal cybersecurity program, risk assessments, encryption, access controls, vendor management, and annual leadership attestations. These protections apply to many NYC fintechs processing sensitive data.

Do I need a Money Transmitter License to operate in New York?

Many payment and remittance services must obtain a New York Money Transmitter License. Licensing involves pre-approval checks, ongoing supervision, and state-specific consumer disclosures.

How much does it cost to hire a fintech attorney in NYC?

Costs vary by experience and matter scope. Typical monthly rates for focused fintech counseling range from a few thousand dollars to higher retainers for complex licensing or litigation matters.

Is New York the only state with BitLicense like requirements?

No. Several states have their own fintech and money services licenses, but New York remains one of the most comprehensive and demanding in the country, especially for virtual currency activities.

What is the typical timeline to obtain a BitLicense in NYC?

BitLicense timelines vary by complexity and regulator workload, but many applications take several months to a year for review and approval, including pre-licensing steps.

Can I operate a fintech app from outside New York but serve NYC customers?

You may need to comply with New York requirements if you actively target or serve New York residents. A local attorney can determine the extent of applicability and licensing needs.

What should I prepare for a regulator meeting in NYC?

Prepare a regulatory map, compliance policies, cybersecurity documentation, and business model details. A lawyer can help you tailor information for NYDFS and other agencies during meetings.

Do I need ongoing local counsel after licensing?

Yes. Ongoing counsel helps with annual reports, regulatory exams, license renewals, and changes in business plans that implicate New York rules.

Additional Resources

These official resources provide authoritative information on fintech regulation and enforcement in New York and at the federal level.

• New York Department of Financial Services (NYDFS) - BitLicense and cybersecurity regulations - Oversees licensing for virtual currency businesses and supervises cybersecurity practices for financial services in New York. https://www.dfs.ny.gov/about_dfs/bitlicense
• New York Attorney General (NYAG) - SHIELD Act and consumer protection - Provides guidance on data security obligations and breach notification for entities handling New York resident data. https://ag.ny.gov/internet-safety/shieldact
• U S Securities and Exchange Commission (SEC) - Fintech regulation and investor protections - Federal oversight and resources on fintech products, crypto offerings, and innovation. https://www.sec.gov/spotlight/fintech

Next Steps

1. Define your business model and regulatory touchpoints (2 weeks) - Map whether you issue tokens, handle customer funds, or provide lending services. Identify if BitLicense, MTL, or other licenses are implicated.
2. Engage a New York City fintech attorney (1 week) - Select counsel with direct experience in NYDFS licensing, cybersecurity, and consumer protection. Request a regulatory map and implementation plan.
3. Prepare a regulatory and licensing plan (2-4 weeks) - Create a timeline forBitLicense and/or MTL applications, along with security and disclosure policies.
4. Assemble required documentation (4-8 weeks) - Gather business plans, financial statements, cybersecurity policies, incident response plans, and customer disclosures.
5. Submit applications and implement controls (3-12 months) - File BitLicense/MTL applications and deploy 23 NYCRR 500 compliant cybersecurity programs. Monitor regulator feedback closely.
6. Develop data security and breach response readiness (ongoing) - Implement reasonable safeguards and incident response testing in line with SHIELD Act and 23 NYCRR 500.
7. Maintain ongoing compliance and renewals (ongoing) - Schedule regular audits, annual leadership attestations, and policy updates to stay current with NY rules.