BitLicense

A BitLicense is the common term used for a business license of virtual currency activities, issued by the New York State Department of Financial Services (NYSDFS) under regulations designed for companies. The regulations are limited to activities involving New York or a New York resident. Those that reside, are located, have a place of business, or are conducting business in the State of New York count as New York Residents under these regulations.

The regulations define virtual currency business activity as any one of the following types of activities:

But, the 2 following activities are excluded from the definition of virtual currency business activity:

It came into effect on August 8, 2015. At least tenbitcoin companies announced they were stopping all business in New York State because of the new regulations. The New York Business Journal called this the "Great Bitcoin Exodus".

In September 2015, Boston-based Circle was granted the first BitLicense, although in December 2016 the company had pivoted away from its bitcoin exchange to focus more on payments.

In October 2015, an article 78 was filed in the Supreme Court of the State of New York challenging the authority of the New York State Department of Financial Services to define virtual currency.

In July 2016, San Francisco-based Ripple was awarded the second BitLicense.

In January 2017, San Francisco-based Coinbase, one of the most heavily funded startups in the Bitcoin industry, was awarded the third BitLicense. Although as of January 2017 only three BitLicenses were awarded, multiple applicants also tried to receive it, but were all denied.

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Wikipedia