Strike has secured both a BitLicense and a money transmitter license from the New York State Department of Financial Services (NYSDFS), enabling the Bitcoin-focused financial services firm to operate in one of the most stringently regulated digital asset markets in the United States. With these approvals, Strike can offer Bitcoin buying and selling to individuals and businesses in New York, as well as converting salaries to Bitcoin and enabling bill payments drawn from Bitcoin balances. Strike founder and CEO Jack Mallers stated that BitLicense allows the company to realize its mission in New York, the financial capital of the world. The firm also plans to introduce Bitcoin-backed loans to let users borrow fiat while keeping their Bitcoin holdings intact.
This move places Strike in the high-risk space that saw major lenders like BlockFi, Celsius, and Genesis seek bankruptcy during the 2022 crypto downturn. In addition, Strike will provide tools such as recurring purchases and price-trigger orders that execute when Bitcoin reaches set levels. Users can convert up to 100% of directly deposited salaries to Bitcoin, and conversion fees are waived for up to $20,000 of monthly deposits. Strike emphasizes that customer Bitcoin and cash balances are held on a 1:1 basis and are not lent or used for company operations, and the license places the company under the direct oversight of the NYSDFS, including audits, capital adequacy rules, and cybersecurity examinations.
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