By
Godfrey Benjamin
January 9th, 2024
After comprehensive review of the activity of cryptocurrency payment processor BitPay, the New York Department of Financial Services granted BitLicense to the company.
Crypto-payment processor BitPay has received a virtual currency license, or ‘BitLicense’, from the New York State Department of Financial Services (DFS).
NY has granted a virtual currency license to @BitPay, the first blockchain payment processor to receive one. It will allow the company to facilitate payment in bitcoin between merchants and consumers in New York state https://t.co/JLLra4SUwc
— New York Law Journal (@NYLawJournal) July 16, 2018
BitLicense is a business license for using cryptocurrencies with a lengthy list of terms and conditions. It enables BitPay to send and receive cryptocurrency payments from other businesses and lets license-holders securely store digital assets and issue a new digital currency.
It was first introduced three years ago as a means to provide a legal framework for cryptocurrency businesses to operate within. Since then, only seven companies have been granted licenses, with BitPay becoming the eighth and following Square. Other companies allowed to process crypto payments for New York merchants and residents include Xapo, Inc., Genesis Global Trading Inc., bitFlyer USA, Coinbase Inc., XRP II and Circle Internet Financial, and charters to Gemini Trust Company and Paxos (formerly itBit Trust Company).
Stephen Pair, CEO of BitPay, commented:
“New York state has one of the strictest policies around businesses involved in cryptocurrency and working through the approval processes to obtain a License was important to BitPay. We believe this hard work will pay off as New York presents significant business opportunities for BitPay.”
BitPay is a global crypto payments processor enabling users to pay or charge for goods and services in either bitcoin (BTC) and bitcoin cash (BCH). Founded in 2011, BitPay is serving industry-leading merchants on six continents.
Payment processing was the company’s first contribution to the Bitcoin ecosystem. With Bitcore, BitPay is building an open source platform to power the next applications of Bitcoin. The BitPay secure bitcoin wallet is giving consumers a powerful toolkit for getting started right with bitcoin payments, and the BitPay Card gives bitcoin users a fast way to convert bitcoin into dollars and spend their funds anywhere Visa is accepted.
According to the DFS, BitPay is the first virtual currency wholesale payments processor to be approved for a license. Financial Services Superintendent Maria T. Vullo said:
“DFS welcomes BitPay to New York’s expanding and well-regulated virtual currency market. 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.”
DFS said it has conducted a detailed review of BitPay’s application, including the company’s anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies. The new licensee is subject to ongoing supervision by DFS.
A lot of companies around the world have already signed up with BitPay to accept bitcoin payments. Among them are popular brands like Microsoft, Newegg, Namecheap, Gyft, Takeaway, and Virgin Galactic. With BitLicense, this list is going to increase.