BitPay becomes the first crypto operator in the state of New York

The operator of crypto-payments, BitPay, became the eighth organization that received BitLicense from the New York State Department of Financial Services (NYDFS). On Monday, the Department announced that it had conducted a "comprehensive review" of the company's compliance with the principles of combating money laundering and fraud, as well as its capitalization, consumer protection and cyber security policies, after which the BitPay application was approved.

 "DFS welcomes BitPay to New York's expanding and well-regulated virtual currency market," said Superintendent of Financial Services Maria T. Woollo. "We continue to work to support a vibrant and competitive virtual currency market that connects and empowers New Yorkers in a global marketplace while ensuring strong state-regulatory oversight is in place."

Now BitPay can handle crypto-payments for sellers and residents of the State of New York. In addition, the license gives the company the right to issue crypto-debit cards inside the state. Currently based in 2011, BitPay supports BTC and BCH.

BitPay became the first independent operator of crypto-currency payments with BitLicense. The Coinbase exchange, which was licensed in 2017, also functions as a platform for sellers, but its core business is focused on cryptocurrency trading.

"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," says Stephen Pair, the head of BitPay. "We believe this hard work will pay off as New York presents significant business opportunities for BitPay."

BitPay became only the eighth company that received BitLicense, despite the fact that this legislative standard has been in force since 2015. Interestingly, half of all issued permits were approved by the NYDFS last month - perhaps this indicates a softening of the regulator's attitude towards the innovative but growing maturity of the crypto-industry.

Other holders of the coveted NYDFS license include Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, Ripple (through the XRP II subsidiary) and Circle. Gemini and Paxos (formerly itBit) received benefits from NYDFS, but were not fully licensed.