The financial regulators at the New York Department of Financial Services are sceptical about Bitcoin, but nevertheless want their state to be a major virtual currency hub; this desire to have it both ways has led to a burdensome licensing process, with only eight 'Bitlicences' having been granted since their origin in 2015.

By the end of October 2016 the NYDFS had issued only two BitLicenses, with 15 applications pending, four withdrawn and four denied. BitPay, a US crypto-currency processor, has now joined the select ranks of Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, XRP II and Circle Internet Financial. The CEO of BitPay recently told the press: "New York state has one of the strictest policies around businesses involved in cryptocurrency." Financial Services Superintendent Maria Vullo echoed this recently with his stated desire to make New York "a global marketplace while ensuring strong state-regulatory oversight is in place.”

This heavy regulation of virtual currency, distributed ledger and blockchain technologies has cost New York dear. It began in 2014 when the commissioner of the day, Ben Lawsky, scared off most Bitcoin merchants to the Isle of Man with his onerous 'Bitlicence' idea, which also - and most scandalously, according to the Bitcoin community - exempted banks. He then backtracked and made some token changes to his proposals for a licensing regime for virtual currencies in the state. During the public comment period he received a staggering 3,700 replies, most of them hostile. Eventually, he shortened the record-keeping requirement for licensees from ten to seven years; decided not to require licensees to obtain the addresses and transaction data for all parties to a transaction; and allowed a broader range of financial assets, including virtual currency, to count toward licensees’ capital requirements. The regime, however, remained repressive and unattractive. Last year's NYDFS annual report painted a bleak picture of the city's prospects on the 'crypto' market.

The virtual currency licence authorises BitPay to transact business with companies and consumers based in New York. Banks based in New York can use BitPay to accept Bitcoin and Bitcoin Cash for purchases from users all over the world and HNW residents with Bitcoin and Bitcoin Cash are able to make purchases. BitPay’s suite of products enables consumers to manage digital assets with the BitPay Wallet and turn digital assets into dollars with the BitPay Prepaid Visa Card. BitPay controls five subsidaiaries, BitPay Brazil, BitPay Netherlands, BitPay UK, BitPay Canada and Bitpay Services, which it owns outright.