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A virtual currency license, also referred to as the BitLicense, has recently been granted to Bitstamp USA Inc., a subsidiary of Bitstamp Ltd. by the New York State Department of Financial Services (DFS), allowing the trading platform to offer their crypto trading services in the state of New York.
In a press release on April 9th, the Acting Financial Services Superintendent Linda A. Lacewell announced the approval of the application of Bitstamp USA Inc. and welcomed Bitstamp to the rapidly emerging crypto market of New York state.
“We are pleased to welcome Bitstamp to New York’s growing virtual currency marketplace. A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy.”
According to the press release, the virtual currency license will allow the company to offer its crypto trading services in different cryptocurrencies as well as several fiat currencies. The license will authorize the company to enable customers to trade in cryptocurrencies which include Bitcoin(BTC)trade, Bitcoin Cash (BCH), Ethereum (ETH)trade, Litecoin (LTC)trade and many more. In addition, the company will also provide fund transfers on the Ripple Network and will offer Ripple balances in USD and many other selected traditional currencies that include the Australian Dollar, British Pound, the Euro, the Swiss Franc, and the Japanese Yen.
Relating to the regulatory framework to combat money laundering and other illicit activities as well as protecting users against crypto scams, the CEO of Bitstamp Nejc Kodrič said:
“Bitstamp has always embraced regulatory efforts that focus on transparency and accountability to help expand the industry and bridge the gap between the traditional financial and cryptocurrency worlds.”
Founded in 2011, Bitstamp is one of the oldest crypto exchange and trading platform. Bitstamp has already acquired a license to be fully regulated in the European Union (EU) in 2016 that allowed the company to operate in all 28 EU member states.
Ever since the Bitlicense came into effect in 2015, the New York State Department of Financial Services (DFS) has approved the applications of 19 companies. With its Bitlicense, the New York state has also taken a lead in regulating, supervising and promoting the cryptocurrency market.
The license ensures that the customers of Bitstamp will have the same protection as consumers that use a traditional banking institution under New York’s banking law. In addition, all the companies associated with crypto transactions within virtual currency exchanges will be regulated and supervised by New York’s financial services law, New York’s banking law and New York’s money transmitter law.