Circle Internet Financial Ltd., a Boston-based bitcoin startup backed by Goldman Sachs Group Inc., has become the first firm to receive a New York State BitLicense, allowing it to offer digital-currency services in New York. The issuance of the first BitLicense marks a victory for both Circle and the State of New York.
The BitLicense is considered the most restrictive state regulation for bitcoin and has caused some bitcoin companies to discontinue serving New York State. The goal of the license is to provide a framework that allows digital-currency firms to build their services, but at the same time protect consumers through requirements such as anti-money laundering compliance and cybersecurity guidelines.
Internet entrepreneurs Jeremy Allaire and Sean Neville founded Circle in 2013.
The BitLicense was introduced by Benjamin Lawsky, then Department of Financial Services (DFS) superintendent, in January 2014.
Circle Notes Concerns About BitLicense
“We’ve been fairly vocal about our concerns with the BitLicense, especially in its initial incarnation,” the company noted in a blog.
Many of those issues were resolved, and though still not perfect, the BitLicense and its requirements became clear and irrefutable prerequisites for serving and supporting