- BitLicenses give companies the ability to operate in the virtual currency space in New York and with citizens from the state.
- “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,” said Stephen Pair – BitPay CEO – in an official press release.
- The new BitLicense demonstrates BitPay’s compliance with the most stringent anti-money laundering, know your customer, anti-fraud, and cybersecurity policies.
BitPay is already the largest blockchain payment provider in the world. However, now it has received a BitLicence from New York State Department of Financial Service (NYSDFS) its market presence is only set to increase further. It appears New York is starting to loosen its tight grip on the crypto market and become more accepting of the industry as a whole. Just last week New York gave power to its municipalities to govern the cost of power for crypto miners, with the aim being to reduce the cost of electricity.
What is a BitLicense?
A BitLicense is essentially a business license for virtual currencies issued in the state of New York. BitLicense regulations are limited to activities inside the state of New York or to a resident of the state. For that reason, BitLicenses are coveted, plus there are very few companies that actually hold them – BitPay is only the tenth to receive one. Other notable license holders include crypto sphere mainstays such as Square, Ripple, Coinbase, and Circle.
New York’s New-Found Confidence in Blockchain
BitPay is slowly becoming more popular with merchants, and this addition of a BitLicense will only further increase the popularity of the payment provider. Last month, the up-market e-commerce store Fancy ditched Coinbase in favor of BitPay following an algorithm update. BitPay’s algorithm is popular amongst retailers who don’t want to be exposed to the volatility in the price of cryptocurrencies.
In a Department of Financial Services press release, Stephen Pair – CEO of BitPay – said: “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 ecommerce and cross-border transfers.”
Is BitPay the Future of Crypto Payments?
BitPay has a wide range of crypto payment solutions – such as wallets, merchant gateways, and bank cards – so it is leading the way in the crypto payment space. There are not many other payment providers who offer the full range. With the BitPay card, you can instantly convert your Bitcoin held in your BitPay wallet into fiat. This unique feature enables BitPay customers to spend their Bitcoin in the easiest possible way. Now, with more companies launching Lightning Network payment solutions, BitPay is facing an uphill battle. Especially with easy to implement crypto payment solutions such as Strike’s e-commerce payment gateway also entering the fray.
Crypto payments are definitely the future and seeing authorities providing regulation in the space is exciting. It means the crypto payments world is becoming safer for consumers and businesses alike. There is still a long way to go in terms of perfecting the technology, but we are slowly edging closer to a safer and more accessible crypto payment world.
