The New York Department of Financial Services (NYDFS) granted BitLicense, the license of virtual currency activities, to Bitcoin and blockchain payment processor BitPay, Inc. This will allow the company to facilitate payment in Bitcoin between merchants and consumers in the State of New York.
The license will also allow New York-based businesses to leverage BitPay to accept Bitcoin and Bitcoin Cash for purchases from users globally, and New Yorkers to make purchases in these currrencies.
BitPay’s suite of products will enable businesses to send and receive cross border payments, manage digital assets with the BitPay Wallet and turn digital assets into dollars with the BitPay Prepaid Visa Card.
BitPay is the first blockchain payment processor and the first non-exchange to secure a virtual currency license from the NYDFS.
The controversial BitLicense regulatory framework, which came into effect on August 8, 2015, is aimed at monitoring and regulating operations of cryptocurrencies such as Bitcoin and cryptocurrency-related products being offered in the State of New York and to New York residents.
The New York regulator has granted the eight-ever BitLicense to BitPay, after approving the first BitLicense to industry startup Circle in September 2015. This was followed by approvals for startup Ripple, Coinbase, BitFlyer USA, Genesis Global Trading and recently for Xapo and Square. Prior to these, Gemini Trust Co., itBit trust Co., and Paxos Trust Co. were issued virtual currency charters.
BitLicense is dubbed as one of the most restrictive cryptocurrency regulatory frameworks in North America. More than fifteen digital currency companies left the New York state because of the new regulations, including Vaultoro, Shapeshift, Paxful, Poloniex, Bitfinex, Kraken, and more. This was called “Great Bitcoin Exodus.”
by RTTNews Staff Writer
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