Cryptocurrency payment processor BitPay is setting foot on New York soil, with a boost from its newly secured BitLicense.
On Monday, the Atlanta-based payment service provider announced that it has received its Virtual Currency License from the New York Department of Financial Services (NYDFS). The license, also known as the elusive BitLicense, allows companies like BitPay to conduct virtual currency-related business with companies and consumers in the state of New York.
Under BitLicense, BitPay is authorized to offer clearing and settlement services to merchants willing to accept or issue payments in Bitcoin, according to Financial Services Superintendent Maria Vullo. This means that New York-based businesses can finally use BitPay to accept Bitcoin Cash (BCH) payments, as well as BTC, from users around the world.
BitPay is the first wholesale payments processor to receive the BitLicense, and joins the growing list of NYDFS-approved crypto firms, which include Square, Xapo, Inc., Genesis Global Trading Inc., biFlyer USA, Coinbase Inc., XRP II and Circle Internet Financial. Gemini Trust Company and Paxos, formerly known as itBit Trust Company, have received NYDFS charters, but have not yet been granted the much sought after BitLicense approval.
To secure the BitLicense, BitPay had to undergo a comprehensive review, which included checking the company’s anti-money laundering, know your customer, anti-fraud, capitalization, and cybersecurity policies. Founded in 2011, the payments processor enables businesses to send and receive cross border payments, also enabling consumers to manage digital assets with the BitPay Wallet and turn digital assets into dollars with the BitPay Prepaid Visa Card.
“New York state has one of the strictest policies around businesses involved in cryptocurrency and working through the approval processes to obtain a License was important to BitPay,” CEO Stephen Pair said in a statement. “We believe this hard work will pay off as New York presents significant business opportunities for BitPay.”
Early this year, BitPay rolled out a new feature that directly accepts BCH, the only true Bitcoin and world’s functional cryptocurrency. This feature allows BitPay-affiliated merchants—over 100,000 of them—to do business with the growing community of Bitcoin Cash users.
The payment processor guarantees secured, instant payments for customers with zero price volatility risks, among other things. Merchants using the BitPay platform can accept payments for BCH, or with BTC, and get daily direct bank deposits with just a 1% transaction fee—no other fees, free settlement every day. Customers pay the BitPay invoice at a locked in exchange rate, and the processor instantly converts the cryptocurrency, shielding merchants from any price volatility risk. To find out how businesses can easily integrate Bitcoin BCH payments with BitPay, read here.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.