Does anybody know what Circle and Bitpay are going to do regarding the New York bitlicence?
BitPay is just a payment processor (e.g. it would not sell or buy bitcoins, or hold accounts in name of clients). As such, it may have different licensing requirements.
Bitpay buy and sell bitcoins. They also hold accounts of all their clients.
Sorry, I meant "buy and sell from individual customers".
I recall their TOS saying explicitly that you could not use them to turn your bitcoins to cash. Basically they came into play when you clicked "pay with bitcoin" at some merchant; they converted the merchant's price to bitcoin, took your bitcoins, sold them, and sent the dollars to the merchant's bank account.
Have they changed recently? Or are you confusing them with Coinbase?