Bitcoin startup Circle has become the first firm to be granted a BitLicense from New York state's financial watchdog.
The new BitLicenses are the New York State Department of Financial Services' (NYDFS) controversial answer to the unique regulatory challenges posed by the nascent crypt-currency industry.
Having secured the first license, as well as a money transfer license for US dollar transactions in the state of New York, Circle can now freely provide its services in the area.
The firm - which counts Goldman Sachs among its investors - says that it still considers the BitLicense system "not perfect" but that "its requirements became clear and irrefutable prerequisites for serving and supporting everyone in New York".
Meanwhile, Circle has also updated its app, enabling American users to send, receive and hold US dollars, in addition to using bitcoin for payments.
This means, says a blog post, that users can "enjoy the benefits of Bitcoin without ever holding or buying bitcoin yourself, and without being exposed to bitcoin price volatility."