Bitcoin is a form of a digital currency, and there are not many laws that are governing its use. Therefore, the consumer protection is always a matter to be worried about. People who are trading in it and, in particular, the ones who are not much aware of its use are highly unlikely to do something on their own as consumer protection. Thus, a law was required that should govern the things properly, and that aids the bitcoin consumer protection. Thankfully, the Bit License is introduced by the New York State’s financial regulators. It helps in consumer protection cases and ensures compliances, cyber security and similar other things, so Bitcoin users can feel even safer while using their currency to make purchases and sales.
What is Bit License?
You know some institutes that are governing the use of conventional currencies. There are certain restrictions and things that they must keep their eye on. These are the operating conditions to ensure that the consumers are protected from fraudulent activities. Same things are now being implemented with the bitcoins. However, as they are not being controlled by the banks, therefore, things are not the same. But the companies that are largely operating in concern with the virtual currency have been handed over certain rules and regulations.
The Bit License has been issued to the Circle Internet Financial. It is an important milestone because it is certain that in future, more forms of digital currencies will be introduced. Therefore, it was highly important to take such step. It will be highly helpful for further development and introduction of new things in cryptocurrency. Earlier this year, a bitcoin exchange license has already been issued.
These steps will not only protect the customers but will also attract the investors to the digital currency market. It is because the licenses have reduced the risks to customers and investors always look for things with minimal risks. Bitcoin still seems like a great investment, so making it even safer and legal seems like something that had to be done, in case of attracting more users into the world of digital currencies.
Creating a license for Bitcoin is just the first step to make it and other form of virtual money attractive to everyone, not only investors and tech freaks. It’s also important to show people different ways to use this digital payment, as some might think that it might not be spend, while there are quite a few shops, restaurants that accept digital coins. Bitcoin users can spend their money directly, or via gift cards, which seems like a great way to get access to goods offered by retailers who don’t accept bitcoins just yet. Bitcoin can be used for basically all kinds of transactions, as there even are bitcoin casinos, that allow players to have fun, while paying with their favorite form of payment (no surprise here, as bitcoin payments can be made instantly and internationally, making it possible to trade with buyers and sellers from all over the world within seconds).