Menu
New York issues first bitcoin license, brings consumer protection

New York issues first bitcoin license, brings consumer protection

Regulators hope the licenses will help build consumer trust in virtual currencies

New York State's financial regulator has issued its first bitcoin license, bringing consumer protection, compliance and cybersecurity guidelines to what still is very much the Wild West of the financial industry.

The BitLicense imposes some of the same conditions on companies operating with virtual currencies such as bitcoin as it does with institutions handling conventional currencies.

The license was issued to Circle Internet Financial, a startup that's received millions of dollars in funding from venture capital firms including Goldman Sachs and IDG Capital Partners. The latter company is a subsidiary of International Data Group, the parent of IDG News Service.

The license will allow Circle to offer a version of its mobile payments system in bitcoin in addition to U.S. dollars.

"Issuing the first BitLicense is an important milestone in the long-term development of the virtual currency industry," Anthony Albanese, New York State's acting superintendent of Financial Services, said in a statement.

Earlier this year, the state issued its first license to a bitcoin exchange, but it wasn't the BitLicense. ItBit chose to register as a trust company -- something that brings a stricter set of rules and regulations, The New York Times reported at the time.

Bitcoin's shine has been somewhat tarnished in the two years since the value of the cryptocurrency hit fantastic highs and people piled into bitcoin "investments." Today, the currency is worth substantially less but while the hype has gone, real interest remains in bitcoin or the idea of virtual money.

At the TechCrunch Disrupt conference in San Francisco on Monday, bitcoin enthusiasts said they believe the currency will ultimately succeed because the underlying technology remains strong.

For that to happen, consumers will need to be able to trust bitcoin holdings -- something that New York's BitLicense is meant to encourage.

"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," said Albanese.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments