NYDFS issues first BitLicense for bitcoin company

The New York State Department of Financial Services (NYDFS) announced on Tuesday the approval of first BitLicense application from a virtual currency firm. It approved Circle Internet Financial’s BitLicense application, thereby making it the first company to receive a BitLicense from NYDFS.

Circle is a digital currency company founded in 2013 by Internet entrepreneurs Jeremy Allaire and Sean Neville and backed by leading venture capital investors Jim Breyer, Accel Partners, General Catalyst Partners, and Oak Investment Partners.

The final BitLicense rules were published by the regulator in June 2015 after almost two-year inquiry into the suitable regulatory guidelines for virtual currency firms. The rules contain key consumer protection, anti-money laundering compliance, and cyber security rules tailored for digital currency companies.

Under those rules, existing virtual currency firms had until August 10, 2015 to apply for a license. So far, NYDFS has received 25 BitLicense applications.

Acting Superintendent Albanese said: “Issuing the first BitLicense is an important milestone in the long-term development of the virtual currency industry. 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.”