Leading Bitcoin payment processor BitPay was awarded a coveted license to deal in cryptocurrencies in New York.
BitPay was granted a so-called Virtual Currency License by the New York State Department of Financial Services (NYDFS), becoming only the eighth such firm to win approval to operate in the state.
BitPay is a payment processor for Bitcoin and Bitcoin Cash. The company specializes in setting up merchant accounts to accept cryptocurrency payments.
BitPay gained the license after the NYDFS scrutinized company’s anti-money laundering, anti-fraud, capitalization, consumer protection, and cybersecurity policies.
The company further added that resident businesses based in New York could leverage its new position to accept Bitcoin and Bitcoin Cash for making/accepting purchases globally.
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To maintain a cryptocurrency license, a provider must fulfill various reporting requirements and comply with standards on consumer protection.
While the US authorities have been relatively active on the subject of cryptocurrencies, the local industrial community has had their ears filled with conflicting talk from the different regulators and various state legislatures.
Against this backdrop, New York is the only state that requires firms dealing in the digital assets to obtain a license to operate. The Empire State has established strong state-based regulation, but the approach has been widely maligned by the crypto community for being one of the strictest laws governing this type of business.
The news follows other, similar stories of progress for Bitcoin companies in the US, though cryptocurrency regulation still happens largely on a state-by-state basis.
Commenting on the news, Stephen Pair, CEO of BitPay, said: “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.”