Circle granted first BitLicense

The “BitLicense” is based on the first set of guidelines created by a state specifically for companies that operate in virtual currencies such as bitcoin, which is created and exchanged independent of banks.

“Issuing the first BitLicense is an important milestone in the long-term development of the virtual currency industry”, Anthony Albanese, New York State’s acting superintendent of Financial Services, said in a statement. Several firms have ceased business in New York state due to the license, but a number did apply for it.

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“We’ve been fairly vocal about our concerns with the BitLicense, especially in its initial incarnation”, the company noted in a blog.

Having secured the first license, as well as a money transfer license for USA dollar transactions in the state of New York, Circle can now freely provide its services in the area.

The firm, founded in 2013, released a new version of its mobile payment service on Tuesday. The company will add more currencies, like the euro, as it gets regulatory approval overseas. “We see bitcoin as an enabling technology”.

New York’s BitLicense has drawn a lot of criticism from members of the bitcoin community who claimed that this type of regulation would end up stifling innovation. Boston-based Circle Internet Financial, with offices in San Francisco, New York, Dublin and London, has 65 employees and customers in more than 100 countries, spokeswoman Sarah Mitchell said.

“High-quality bitcoin businesses will continue to move into the mainstream financial sector, and in some cases will be game changers”, Fenton said.

According to a blog post from the company today, Circle will now be able to serve customers in New York under the divisive regulatory framework, applications for which closed on 8th August.

“We are trying to move expeditiously”, said Matthew Anderson, the department’s superintendent for public affairs, to the Wall Street Journal.