Blockchain Payments Firm BitPay Receives BitLicense From New York Department Of Financial Services

News, Regulation | July 17, 2018 By:

Blockchain payments technology platform BitPay has been granted a BitLicense by the New York Department of Financial Services (NYDFS), making it the eighth firm to receive such license.

BitPay is a global bitcoin payment service provider headquartered in Atlanta, Georgia. It provides bitcoin and Bitcoin Cash payment processing services for merchants, and is one of the largest bitcoin payment processors. BitPay has developed open source bitcoin projects, including BitCore, which allows app developers to more easily build projects on the bitcoin network, and Copay, an open source wallet platform.

The recently acquired BitLicense from the NYDFS will allow BitPay to transact business with companies and consumers based in New York. New York businesses will now be able to leverage BitPay to accept bitcoin and Bitcoin Cash for purchases from users globally, and residents with bitcoin and Bitcoin Cash will be able to make purchases.

The NYDFS conducted a comprehensive review of Genesis BitPay’s application, including the company’s anti-money laundering, anti-fraud, capitalization, consumer protection, and cyber security policies.

“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,” said Stephen Pair, CEO of BitPay. “We believe this hard work will pay off as New York presents significant business opportunities for BitPay.”

The BitLicense came into effect in August 2015. To date, only eighth BitLicenses were awarded. The NYDFS has granted BitLicenses to Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, XRP II and Circle Internet Financial.

The news comes just a few months after BitPay secured $40 million through its extended Series B funding round, which brings the total amount raised to over $70 million since the company’s inception in 2011.