After the NYDFS has scrutinized the anti-money laundering, anti-fraud and so on, BitPay gained the license. Leading the Bitcoin payment processor, BitPay has been awarded a coveted license to deal in cryptocurrencies in New York.
What is BitPay?
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 which won the approval to operate in the state.
BitPay is actually a payment processor for Bitcoin and Bitcoin Cash. This company specializes in setting up merchant accounts to accept cryptocurrency payments.
This payment processor won the license after the New York State Department of Financial Services (NYDFS) scrutinized the anti-money laundering, anti-fraud, capitalization, as well as consumer protection and cybersecurity policies of the company.
Accepting Bitcoin and Bitcoin Cash for making purchases globally
Furthermore, the company added that resident businesses based in New York could leverage its new position to accept Bitcoin and Bitcoin Cash for making/ allowing purchases globally.
To maintain a cryptocurrency license, the provider needs to fulfill different reporting requirements and comply with standards on consumer protection.
While the authorities of US were relatively active on the subject of cryptocurrencies, the local industrial community filled their ears with a conflicting talk from the different regulators, as well as various state legislatures.
The hard work will pay off
Against this backdrop, New York is the only state which requires firms that are trading in the crypto assets to obtain a license to run. The Empire State established dominant state-based regulation, but the approach was after that generally accused by the crypto society for being one of the strictest regulations governing such sort of business.
The news also follows some other, similar stories of progress for Bitcoin companies in the US, even though cryptocurrency regulation is still happening mainly on a state-by-state basis.
Commenting on this news, the CEO of BitPay named Stephen Pair, said that the NY State has one of the stringent policies around business involved in cryptocurrency, as well as working through the approval processes to obtain a License which was essential to BitPay. He also said that they believe that this hard work is going to pay off as New York presents vital business opportunities for BitPay.