Cryptocurrency payment processor BitPay has been awarded with BitLicense, the special virtual currency license from the New York Department of Financial Services (DSF), the regulator said on Monday. The permit allows BitPay to offer clearing and settlement services to New York-based companies that want to make transactions with Bitcoin (BTC) and Bitcoin Cash (BCH).
As part of the application process, DSF conducted review of BitPay, including the company financial balances, its anti-money and anti-fraud policies as well as consumer protection and cybersecurity measures.
Stephen Pair, BitPay’CEO said in a statement:
“We believe this gives businesses not only in New York but across the country confidence that blockchain technology offers clear benefits to businesses engaged in ecommerce and cross border transfers.”
BitPay was founded in 2011 and offers storing of BTC and BCH as well as turning them to US dollars. It also has own wallet and card that is compatible with Visa ATMs. The company has signed deals with several major international players like Microsoft (NASDAQ:MSFT), Takeaway Namecheap and Gyft.
BitPay has become the first payment processor with New York state official cryptocurrency authorization. So far, the regulator has granted ten companies with the license: Square (NYSE:SQ), Xapo, Genesis Global Trading Inc., bitFlyer USA, Coinbase, Ripplle through XRP II subsidiary, Circle Internet Financial, Gemini Trust Company, and Paxos (formerly itBit Trust Company).
“We continue to work to support a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place.” Financial Services Superintendent Maria T. Vullo said.
BitLicense is obligatory for companies that want to offer one of the following services: cryptocurrency transmissions; storing, holding, or maintaining custody or control of digital coins on behalf of others; buying and selling crypto as a customer business; controlling, administering, or issuing a virtual currency; and offering exchange services.
This article appeared first on Cryptovest
