What Is A BitLicense?

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  • A BitLicense is a business license for digital currencies. The license was issued by the New York State Department of Financial Services (NYSDFS) in 2015

 

  • The BitLicense is required by those that deal in cryptocurrencies in the State of New York. The regulations state that this includes;
  1. Virtual currency transmission
  2. Storing, holding, or maintaining custody or control of virtual currency on behalf of others
  3. Buying and selling virtual currency as a customer business
  4. Performing exchange services as a customer business
  5. Controlling, administering, or issuing a virtual currency

 

  • However, a BitLicense is not required in the development of software

 

  • Up until now only 5 BitLicense’s have been issued:
  1. September 2015 – Boston-based Circle was granted the first BitLicense
  2. July 2016 – San Francisco-based Ripple was awarded the second BitLicense
  3. January 2017 – San Francisco-based Coinbase was awarded the third BitLicense
  4. November 2017 – Tokyo based bitFlyer was awarded the fourth Bitlicense
  5. May 2018 – New York based Genesis Global Trading received the fifth BitLicense (the first ever New York based company to receive a BitLicense)

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