New York State Financial Services Superintendent Maria T. Vullo today announced that the New York Department of Financial Services (DFS) has approved the application of BitPay, Inc. for a virtual currency license. BitPay is authorized to offer clearing and settlement services to merchants willing to accept payment in bitcoin or issue payments in bitcoin and is the first wholesale payments processor to be approved for a license.
DFS conducted a full 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.
The virtual currency license authorizes BitPay to transact business with companies and consumers based in New York. Businesses based in New York can leverage BitPay to accept Bitcoin and Bitcoin Cash for purchases from users globally, and residents with Bitcoin and Bitcoin Cash are able to make purchases.
BitPay’s suite of products enables businesses to send and receive cross-border payments, also enabling consumers to manage digital assets with the BitPay Wallet and turn digital assets into dollars with the BitPay Prepaid Visa Card. BitPay Inc. controls five wholly-owned subsidiaries, BitPay Brazil, BitPay Netherlands, BitPay UK, BitPay Canada and Bitpay Services, LLC.
“This is an important milestone for BitPay to secure the virtual currency license from the New York Department of Financial Services and be the first non-exchange to do so. We believe this gives businesses not only in New York but across the country confidence that blockchain technology offers clear benefits to businesses engaged in e-commerce and cross-border transfers.”
With the BitPay approval, DFS has now approved ten firms for virtual currency charters or licenses, while denying those applications that did not meet DFS’s standards. DFS has also granted licenses to Square, Inc., 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).
“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.”