BitPay Granted ‘Virtual Currency License’ in New York

Leading Bitcoin payment processor BitPay was awarded a coveted license to deal in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term 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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

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.

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.”