A BitLicense is a business license required by companies conducting virtual currency activities in the state of New York in the US. The New York State Department of Financial Services (NYSDFS) issues these licenses.
Also known as a Virtual Currency Business Activity License, a BitLicense has three purposes:
- Adopt regulations that prevent money laundering
- Protect consumers
- Establish rules regarding cyber security.
A BitLicense only applies to companies that send, hold, buy, sell, manage or spend cryptocurrencies. A New York-based company does not need a BitLicense to receive cryptocurrency as payment.
So far, several companies have obtained a BitLicense. Gemini, Ripple, Coinbase, Square, BitPay, Coinsource, and Robinhood are examples of such companies. It is not easy to get a BitLicense. Many of these companies had to wait a while between applying for their BitLicense and receiving it.
In May 2018, Fortune reported that Genesis Global Trading (the fifth BitLicense beneficiary) had to wait almost three years for approval, while Japan-based BitFlyer had to wait more than a year for a license from New York.
Business24-7 aims to help those interested in cryptocurrency make safe and informed investing decisions. We are dedicated to offering our readers unbiased reviews of leading cryptocurrency exchanges for traders at all levels. Cryptocurrency exchanges are included in our reviews if they are safe, liquid, regulated by proper authority, or decentralized.
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.