Virtual Currency: Buying & Selling Without Government Issued Money
Earlier this week, the New York State Department of Financial Services (NYDFS) issued its first bitcoin license, allowing Boston-based Circle Internet Financial, Ltd. to offer mobile payments in bitcoins. Circle is a start-up that counts amongst its venture capital partners Goldman Sachs, IDG Capital Partners, and others. The issuance of the license came at the same time the company unveiled a new version of its service, CirclePay.
There are other cryptocurrency companies operating outside of New York State such as GoCoin, but the issuing of a license in New York State, home to New York City, and perhaps the world’s leading financial markets, is a major event.
NYDFS put together financial regulations to help protect consumers, ensure compliance, and meet cyber-security guidelines in what has been seen as a free-for-all in the cryptocurrency space.
IndustryTap has written 1) Bitcoin as Electronic Gold, 2) Satoshi Nakamoto and the Depolitization of Money, and 3) the Mainstreaming of Cryptocurrencies, along with other articles on this topic.
Bitcoin and blockchain technology was introduced by programmers about a decade ago and has been released under open source licenses. However, any business wishing to transmit money using bitcoin will now have to operate under federal and local laws, where applicable.
The following video is an in-depth look at Bitcoin and Circle wallet at the Dubai Bitcoin Conference: