The state of New York, one of the states which recently joined the forefront of strict cryptocurrency regulations, has approved an application from a subsidiary of New York Digital Investment Group (NYDIG) to offer “secure custody and trading services” in New York. The license is often criticized as the strictest US state law governing digital assets.
The department has now authorized the company to offer “secure custody and trade execution services” for digital assets such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC).
“Today’s approval further demonstrates that operating within New York’s robust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls,” said DFS Superintendent Maria T. Vullo.
No cryptocurrency startup in New York City can operate without a BitLicense
Since mid-2015, New York has required cryptocurrency companies doing business there to get this License in order to exchange digital tokens for fiat and hold customer funds. Ripple, BitFlyer, Coinbase, itBit and the Winklevoss twins’ Gemini have the license.
New York introduced its controversial crypto regulatory framework in 2015. And the introduction of this virtual currency license forced dozens of crypto exchanges to relocate from the state to other places in what the New York Business Journal referred to as the “Great Bitcoin Exodus.” Since then the BitLicense has come in for intense criticism from crypto investors and enthusiasts.