BitPay seeks US banking license


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BitPay, a cryptocurrency payment company, has applied to become a national bank in the United States, CoinDesk reported, citing a legal notice released on Tuesday (December 8).

BitPay has filed an application with the Office of the Comptroller of the Currency (OCC) to establish a federally regulated bank called BitPay National Trust Bank, which will be headquartered in Georgia.

The news comes after OCC Acting Controller Brian Brooks said earlier this year he would consider putting in place a framework to allow FinTechs to license and streamline their operations in the country. , including crypto companies.

Right now, crypto companies and other digital payment startups must acquire money transfer licenses in every state and territory they wish to operate in, CoinDesk reported, but by becoming a national bank, BitPay could circumvent these requirements.

In a statement to CoinDesk, BitPay said the company “will be subject to strict security and robustness requirements, which will provide our customers with the assurance that our services remain best-in-class and allow us to be subject to a uniform regulatory framework “.

BitPay’s request indicated that the total capitalization its national bank would get from shares issued would be just under $ 12 million, and that there would be 120 shares issued, CoinDesk reported.

Brooks’ actions to set up more FinTechs to license were rebuffed by opponents who believed the measures were “excessive and deregulatory,” according to CoinDesk. California Representative Maxine Waters has called on the incoming administration of President-elect Joe Biden to remove a number of shares at the head of President Donald Trump’s agency, including Brooks’ crypto shares.

In addition, Representative Rashida Tlaib introduced the STABLE law, which would require stablecoin issuers to obtain bank charters.

In related news, BitPay introduced BitPay Send last month to enable payments to workers, customers, affiliates, suppliers and more with digital currencies. According to CEO Stephen Pair, the program makes it easy for businesses to make mass payments.

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