Department of Financial Services approves first ‘BitLicense’

Albanese, Acting Superintendent of Financial Services, has announced that the New York State Department of Financial Services (NYDFS) has approved Circle Internet Financial’s BitLicense application – making it the first company to receive a BitLicense from NYDFS. The latter company is a subsidiary of global Data Group, the parent of IDG News Service.

There is some concern within the digital currency industry that service provider choice for consumers may be limited by the BitLicense regulations.

The BitLicense from the New York Department of Financial Services is based on the first set of USA state guidelines for companies that operate in virtual currencies such as bitcoin, which is created and exchanged independent of banks.

The BitLicense rules also include an anti-money laundering program that requires licensed companies to keep detailed records of their accountholders’ transactions, including their identities and physical addresses.

“Our goal is to make sending and receiving money instant, secure and free for people around the world, including New Yorkers”, said Sean Neville, co-founder and president. “You can hold U.S. dollars but still send someone bitcoin, and likewise someone can send you bitcoin and Circle can instantly turn it into USA dollars in your account”. The BitLicense is the first of its kind operating license for virtual currency firms, bringing with… “We see bitcoin as an enabling technology”.

The Wall Street Journal said the debate continues about how much the BitLicense has affected the business environment for Bitcoin.

At the same time, 22 companies have applied for the license, which carries a $5,000 application fee. “We are trying to move expeditiously”, said Matthew Anderson, deputy superintendent for public affairs at the department, in an interview with WSJ.

New York City is also home to a growing number of bitcoin-related businesses, including the Winklevoss twin’s Gemeni, ItBit, CoinSetter, Symbiont, and Consensys.