Bitcoin startup Circle receives first digital currency license

In the early morning of September 23rd, Beijing time, Circle Internet Financial (hereinafter referred to as "Circle"), a Boston Bitcoin startup supported by Goldman Sachs Group, has obtained the first digital currency license BitLicense from New York State regulators, which means that the company will be able to provide digital currency services in New York State with a license.

Circle, founded in 2013, on Tuesday released the latest version of its mobile payments service, renamed 'CirclePay'.

The New York State Department of Financial Services has issued Circle a BitLicense, which was developed under the first set of U.S. government guidelines for companies operating in virtual currencies such as Bitcoin, which are created and traded independently of banks. The guidelines were issued in June to provide consumer protection, prevent money laundering and improve network security.

Circle President and co-founder Sean Neville said in an interview that the company uses the bitcoin blockchain technology to allow consumers to send money. He said: "We see ourselves as a consumer finance company and we see bitcoin as an enabling technology."

Neville pointed out that Circle's business operations still rely on banks, and its partner in the United States is Silicon Valley Bank. In addition to New York State, the company has or is seeking licenses in other states in the United States.

Existing virtual currency companies can apply to conduct business operations in New York State before August 10. The New York State Department of Financial Services said that it has received 25 applications so far and said that the department will continue to evaluate these applications.

Anthony Albanese, acting secretary of the New York State Department of Financial Services, said in a statement Tuesday that the license sets "'rules of the road' that help protect consumers from loss, prevent theft and eradicate illegal activity."

Goldman Sachs and other investors have provided $76 million in venture capital to Circle, according to its website. Circle's last venture capital round was co-led by Goldman Sachs and IDG Capital Partners.