New York Regulator Issues 1st-Ever Operating License To Bitcoin Firm

Circle also has insurance from the Federal Deposit Insurance Corporation on Dollars deposits, which the company said complements its existing full insurance protection over customer Bitcoin funds.

The BitLicense itself has been around for, well, a bit, having been introduced by the New York Department of Financial Services in January of previous year.

The state Department of Financial Services announced Tuesday morning that it has given out the nation’s first BitLicense, which is the first-of-its-kind state regulatory framework for firms dealing in virtual currencies, such as Bitcoin.

The new BitLicenses are the New York State Department of Financial Services’ (NYDFS) controversial answer to the unique regulatory challenges posed by the nascent crypt-currency industry.

“We think of ourselves as a consumer finance company”.

Internet entrepreneurs Jeremy Allaire and Sean Neville founded Circle in 2013.

Many of those issues were resolved, and though still not ideal, the BitLicense and its requirements became clear and irrefutable prerequisites for serving and supporting everyone in New York.

The firm has obtained or is seeking money transmitter licenses in other states as well. “We see bitcoin as an enabling technology”.

New York City is also home to a growing number of bitcoin-related businesses, including the Winklevoss twin’s Gemeni, ItBit, CoinSetter, Symbiont, and Consensys.

Under BitLicense rules, virtual currency firms operating in New York had until August 10, 2015, to apply for a BitLicense. The service manages the currency conversion automatically. New York regulators are still evaluating another two dozen companies that have applied for the license. Today, the currency is worth substantially less but while the hype has gone, real interest remains in bitcoin or the idea of virtual money. “We are trying to move expeditiously”, said Matthew Anderson, the deputy superintendent for public affairs at the DFS.

Featured image from Shutterstock.

Originally appeared at: