NY Regulator Grants First BitLicense to Circle

The New York State Department of Financial Services (NYDFS) awarded the first-ever BitLicense to Circle, a leading bitcoin wallet provider.

To ensure full compliance for its services, the startup also has a Money Transfer License for US dollar transactions in the state of New York.

“We’ve been fairly vocal about our concerns with the BitLicense, especially in its initial incarnation. Many of those issues were resolved, and though still not perfect, the BitLicense and its requirements became clear and irrefutable prerequisites for serving and supporting everyone in New York,” stated the company in a blog post.

Backed by Goldman Sachs Group, the Boston-based company rolled out a list of updates to complement the issuance of the controversial license. Now called Circle Pay, the payments app (available on iOS and Android) offers tiered cash limits for basic cashing and spending transactions.

Initially, users will start with a $300 weekly limit. After hitting various account milestones, customers can eventually reach a threshold of $3,000.

The startup also updated its transaction fees. Charges will not be applied to customers who are funding their account using a debit card. Transactions using both debit and credit cards are instant, but the latter method is subject to network and handling fees.

For enhanced protection, US dollar deposits on the platform are FDIC insured.

In addition to Circle, the NYDFS is currently processing over 24 BitLicense applicants, which are composed of bitcoin startups, service providers and exchanges. The institution expects the number of applicants to increase, as the technology hits mainstream markets.

“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 New York’s acting superintendent of financial services, Anthony J. Albanese.