New York Grants First BitLicense to Circle
Sept. 24, 2015
On Tuesday, 14 months after initially floating a first-of-its-kind proposal publicly, the State of New York issued its first BitLicense to Circle Internet Financial. In June, the New York Department of Financial Services was the first state agency to implement a comprehensive regulatory framework for firms dealing in digital or virtual currencies such as bitcoin. The regulations cover consumer protections, anti-money laundering compliance and cybersecurity standards and experts believe the BitLicense will serve as a model for other states and the federal government in establishing rules companies that enable bitcoin payments will be required to adhere to.
“Issuing the first BitLicense is an important milestone in the long-term development of the virtual currency industry,” said Anthony Albanese, acting superintendent of financial services. “Putting in place rules of the road that help protect consumers from loss or theft and root out illicit activity is vital to building trust in this new financial technology. We will continue to move forward on evaluating and approving additional BitLicenses.”
Circle is a Boston-based company whose app enables users to store, send and receive bitcoin.