What is BitLicense?

The BitLicense is a business license for virtual currency activity that crypto enterprises must obtain before operating in the state of New York. BitLicenses are issued by the New York Department of Financial Services (NYDFS), and primarily regulate the commercial receipt, storage, and transfer of digital assets. Only 25 have been granted as of 2020, while recipients include Circle, Coinbase, Robinhood, and Square. Businesses chartered under New York banking law such as Gemini are not required to hold BitLicenses.