Circle Mobile Payments Receives First New York BitLicense

Following the exodus of several New York-based bitcoin companies following the implementation of the BitLicense earlier this year, this week the framework approved its first regulatory license to mobile payments company Circle, which can now send, receive and hold U.S. dollars and bitcoin.

Circle Internet Finance Ltd. was founded two years ago by Jeremy Allaire and is backed by Goldman Sachs Group Inc. This is the first time a startup has been legally allowed to offer digital currency services in New York State.

New York BitLicense Framework

Once launched, the New York BitLicense received a lot of criticism from the Bitcoin community, who believed that this type of regulation would ultimately stifle innovation.

After all, securing a license for a digital product is expensive, with legal fees and paperwork to cover.

For the New York Department of Financial Services (NYDFS), the goal of the BitLicense is simple: to set a framework for digital currencies that protects consumers while providing services. Various anti-money laundering and cybersecurity guidelines are included.

Despite this, opposition to the BitLicense remains strong, and some bitcoin companies abroad have even stopped providing services to New York.