A bit license is a business license for a password asset.
It is issued by the New York State Department of Financial Services (NYSDFS), which grants permission for the password property business, which includes New York and New York State.
People who live or work in New York State are treated as residents of the State of New York and drafted by Benjamin Lawsky and issued on July 17, 2014.
The regulations define virtual currency business activity as any one of the following types of activities
receiving virtual currency for Transmission or Transmitting virtual Currency, except where the transaction is undertaken for non-financial purposes and does not involve the transfer of more than a nominal amount of virtual currency;
① storing, holding, or maintaining custody or control of virtual currency on behalf of others;
② buying and selling virtual currency as a customer business;
③ performing Exchange Services as a customer business, or;
④ controlling, administering, or issuing a virtual currency.
⑤ The two following activities are excluded from the definition of virtual currency business activity:
① development and dissemination of software in and of itself;
② merchants and consumers that utilize virtual currency solely for the purchase or sale of goods or services or for investment purposes.
BitLicense was released on July 17, 2014 with detailed details, announced on July 23, and received 45 days of feedback.
After the February 30, 2015 additional 30-day comment, the proposed amendment was announced.
And on August 8, 2015, the previous work of password-protected property companies was discontinued, and the New York Business Journal called it the Great "Bitcoin Exodus".
Circle in September 2015 was the first to receive a BitLicense.
In July 2016, Ripple was awarded a second bit license.
Coinbase was issued the third time in January 2017.
In November 2017, BitFlyer was issued for the fourth time and Genesis Global Trading was issued for the fifth time.
In June 2018, Xapo was awarded the sixth and Square was the ninth. Prior to that, Gemini Trust Company and Paxos (ItBit Trust Company) were issued 7th and 8th times.