BitPay has been licensed to operate in New York. In an announcement on Monday, the company said that it had been given a virtual currency license or BitLicense by the New York State Department of Financial Services (DFS).
Clearing and settlement services
The bitcoin payment processor can now offer clearing and settlement services to companies and individuals in New York. The company will facilitate payments in Bitcoin (BTC) and Bitcoin Cash (BCH).
The license came after the DSF conducted an extensive review of BitPay. The review involved evaluating the company’s anti-fraud and anti-money laundering policies. Additionally, the company had to prove its capacity to protect customers from cybercrimes. BitPay allows users to charge for goods and services in Bitcoin or Bitcoin Cash.
Requirements for the license
There are several conditions that a company must meet and maintain to get the license. The standards are mainly centered on consumer protection. Although the cryptocurrency market has grown in the U.S, the local New York industry is yet to pick up the pace. This is because the state has been fed with conflicting arguments from law makers and regulators.
Despite these challenges however, New York is moving towards having a licensed and orderly digital asset industry. The state requires all companies dealing in cryptocurrencies before being allowed to operate.
New York has put in place a very strong regulatory framework. The framework has however been accused by stakeholders in the crypto industry for being too strict and hence killing the business.
This news adds to several other success stories for Bitcoin companies in the U.S. Several states in the U.S have also taken measures to regulate their crypto industries.
In a statement, BitPay CEO Stephen Pair, said that the state has some of the strictest regulations for such types of business. He added that despite being an engaging process, the company was motivated to work through so as to attain full approval. He said that they are very optimistic that the hard work and commitment displayed in seeking the license will pay off in terms of opening business opportunities for the company and the community.