Bitcoin startup Circle receives first digital currency license in New York State

     Phoenix Technology News, Beijing time, September 23, according to Reuters, on Tuesday local time, New York State regulators issued the state's first digital currency license BitLicense to Circle Internet Financial, a Boston Bitcoin startup backed by Goldman Sachs Group, allowing the latter to provide digital currency services in New York State.

     Founded in 2013, Circle released a new version of its mobile payments service on Tuesday.

     The first BitLicense issued by the New York State Department of Financial Services to Circle is based on the U.S. government's first set of virtual currency operating guidelines. The guidelines regulate the creation and trading of virtual currencies that are independent of the banking system, such as Bitcoin. The guidelines were issued in June this year and are aimed at protecting consumers, preventing money laundering and improving network security.

     Circle President and co-founder Sean Neville said in an interview that the company uses bitcoin's "blockchain" technology to allow consumers to conduct transactions. "We think of ourselves as a consumer finance company, and we see bitcoin as a technology that has broad applicability."

     Neville pointed out that Circle's business still relies on banks, and its partner in the United States is Silicon Valley Bank. In addition to New York State, the company has begun or is seeking operating licenses in other states in the United States.

     Existing virtual currency companies can submit business operation applications to New York State before August 10. The New York State Department of Financial Services said that it has received 25 applications so far and will evaluate the above applications one after another.

     Anthony Albanese, head of the New York State Department of Financial Services, said in a statement Tuesday that the license sets "rules of the road" that "can help protect consumers from loss or theft while rooting out illicit activity."

Circle's website shows that Goldman Sachs and other investors have provided $76 million in venture capital to the company . The last round of venture capital funding Circle received was jointly led by Goldman Sachs and IDG Capital.