Crypto payment processor BitPay has received a BitLicense, the special virtual currency license from the New York Department of Financial Services (DSF).
The permit allows BitPay to offer clearing and settlement services to New York-based companies that want to make transactions with crypto.
A BitLicense is required for all companies who provide any crypto related service including payments, storing, holding, buying and selling crypto as a customer business; controlling, administering, or issuing a virtual currency; and offering exchange services.
Stephen Pair, BitPay’s CEO said in a statement:
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.
BitPay claims to have hundreds of thousands of businesses, including Microsoft, Newegg, and Virgin Galactic, as customers using their services.
Pair added “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.”
So far, the regulator has only granted ten companies the license: Square, Xapo, Genesis Global Trading Inc., bitFlyer USA, Coinbase, Ripplle through XRP II subsidiary, Circle Internet Financial, Gemini Trust Company, and Paxos (formerly itBit Trust Company).
Financial Services Superintendent Maria T. Vullo said in the announcement:
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.
The new license is subject to ongoing supervision by the DFS.