New York regulator issues first license for bitcoin company

The licenses are now required for companies that want to do business with New Yorkers, he said.

Circle Internet Financial, one of the crypto industry’s largest bitcoin wallet services, has become the first to be granted a BitLicense to operate in New York State.

“Issuing the first BitLicense is an important milestone in the long-term development of the virtual currency industry”, Anthony Albanese, the regulator’s acting superintendent, said in a statement.

Boston-based firm Circle Internet Financial Ltd. was granted the license – known, perhaps appropriately, as a “BitLicense” – by the New York Department of Financial Services.

Twenty-five companies have applied for BitLicenses, according to DFS, which has been researching and trying to find the proper regulation for virtual currency since 2013.

The Wall Street Journal reported that the announcement of the BitLicense approval came as Circle released a new version of its online service called CirclePay, which aims to make digital payments more appealing.

Alongside other functionality, the new service will allow USA customers to hold, send and request dollars from their contacts and refuel their account by bank transfer or credit card.

Bruce Fenton, executive director of the nonprofit Bitcoin Foundation, said it was good news that Circle was able to comply with the rules, which he called “burdensome”.

Neville and Allaire mentioned in the blog post the company’s full compliance with New York’s money transmitter and BitLicense regulations. The company won’t disclose exact transaction and volume data, but they are seeing “significant consumer demand” globally for its product, which now enables transactions in US dollars and in bitcoin, she said.

“High-quality bitcoin businesses will continue to move into the mainstream financial sector, and in some cases will be game changers”, Fenton said. To date, NYDFS has received 25 BitLicense applications.

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