The BitLicense debacle is slowly moving away from the spiral of negative attention, even though many Bitcoin enthusiasts still feel this type of regulation is overly invasive. Now that Circle has become the first Bitcoin company in history to receive their BitLicense, they can finally offer their services to New York customers once again.
Circle Becomes Fully Regulated in New York
After paying the US$5,000 application fee and going through the tedious process of filing the necessary paperwork, Circle Internet Financial Ltd. has become the first Bitcoin company to obtain its BitLicense. This marks the first milestone for New York’s regulatory Bitcoin framework, which has caused quite a bit of controversy over the past few months.
Even though there is a clear need for Bitcoin regulation all over the world, many community members feel that the BitLicense is not the right way to approach the matter. Customer protection is important, especially in the world of digital currency, but forcing companies to violate user privacy and hand over those details to New York's state officials, might be taking things one step too far.
Regardless of that, Circle can now operate their Bitcoin business in the state of New York, while being compliant with all regulations. Following the news of their BitLicense approval, Circle has announced they will be launching a mobile payment service that will be able to send and receive funds in both Bitcoin and U.S. Dollar.
Furthermore, this new service will give customers the chance to send money to anyone else through text message. But that is not all, as Circle users will have the choice to keep their funds in Bitcoin or convert it to U.S. Dollars on their own accord. Doing so gives the user more freedom to control their finances and use one application to hold both fiat and digital currency balances. Circle is working hard to get regulatory approval overseas as well, as the company aims to target the European market next.
According to statistics provided by the New York Department of Financial Services, 22 Bitcoin companies have applied for a BitLicense. The NYDFS expects to send out more approvals in the very near future, as the team is trying to speed things up a little, according to Matthew Anderson, deputy superintendent for public affairs.
Source: WSJ MoneyBeat
JP Buntinx is a freelance Bitcoin writer and Bitcoin journalist for various digital currency news outlets around the world. Jean-Pierre is an active member of the Belgian Bitcoin Association, and occasionally attends various Bitcoin Meetups in Ghent and Brussels. Follow the author on Twitter @jdebunt
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