Switzerland issues first license to crypto exchange

Switzerland's FINMA for the first time grants licensure to a cryptocurrency exchange
20 October 2017   1228

For the first time, the Financial Market Supervisory Authority (FINMA), a regulatory arm of the Swiss government, has licensed a crypto exchange to operate as a Directly Subordinated Financial Intermediary.

In the official press release, the exchang called "Payment21" describes the licensure as the result of “over one year of substantial effort.” 

We are committed to meeting the legal requirements of the Swiss financial marketplace.  Our handling of compliance issues enriches the digital currency ecosystem, and demonstrates that Swiss regulators embrace competitiveness in financial services, and truly encourage Fintech innovation in the digital era.
 

Bernhard Kaufmann 
Managing Director of the exchange

The man also highlights that "government licensing is crucial when establishing a payments business". Indeed, an official approval in a leading European financial center like Switzerland is a key differentiator in the competitive landscape.

Though this is a first for FINMA, the body has recently made other forays into the crypto space.
 

Bernhard Kaufmann 
Managing Director of the exchange

Payment21 is going tp expand into other cryptocurrency sectors.  For now, it also processes Bitcoin transactions on behalf of ecommerce vendors, enabling them to accept the cryptocurrency as payment for goods and services. 

BitPay to Receive New York's BitLicense

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers
17 July 2018   102

The well-known cryptocurrency processing service BitPay obtained a license to work with virtual currencies in the state of New York. Known also as BitLicense, this license is issued by the New York Department of Financial Services (NYDFS) and grants its holders the ability to conduct activities related to cryptocurrencies in the state.

NYDFS has carefully studied the company's application, including its policy on measures to combat money laundering, customer identification, fraud prevention, cybersecurity. The financial situation of the company was also thoroughly analyzed.

New York state has one of the strictest policies around businesses involved in cryptocurrency and working through the approval processes to obtain a License was important to BitPay. We believe this hard work will pay off as New York presents significant business opportunities for BitPay.
 

Stephen Pair

CEO, BitPay

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers: the first will be able to use the company's processing services to accept payments in Bitcoin and Bitcoin Cash, the latter will pay for various goods and services using these two BitPay supported cryptos.

Note that BitPay was only the eighth company that received BitLicense. Other license holders are Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, Ripple and Circle. In addition, special permissions for operations with crypto-currencies are exchanged by Gemini and itBit.