New York Department of Financial Services Issues 14th BitLicense

Today, November 14, 2018, the New York State Department of Financial Services (DFS) announced that it has approved the application of NYDIG Execution LLC, a subsidiary of NYDIG LLC, for a virtual currency license and a money transmission license. The approval of this so-called “BitLicense” or “Virtual Currency License” application is the 14th of its kind and is required under New York State law in order for a company to engage in “any Virtual Currency Business Activity.”

Under the BitLicense, NYDIG Execution LLC is allowed to offer secure custody and trade execution services, as well as to operate as a custodian for virtual currencies, including bitcoin, bitcoin cash, ether, ripple and litecoin.

DFS Superintendent Maria T. Vullo approved the request, stating, “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.”

First enacted in August 2015, BitLicense regulations caused an outcry from the community. Some industry companies such as Circle pursued a BitLicense, and others such as itBit (now Paxos Trust Company) received approval to operate as a “chartered trust company” with DFS oversight. However, many left the state for more accomodating jurisdictions in what the New York Business Journal called “the Great Bitcoin Exodus,” citing overly burdensome regulatory hurdles, excessive disclosure requirements and financial disincentives in pursuing the license applications.

San Francisco–based exchange Kraken withdrew from servicing New York residents because of the state’s new licensing requirements. In a blog post titled “Farewell, New York,” the founders of Kraken stated, “Regrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.”

The process of granting Virtual Currency Licenses had been slow initially, with Coinbase acquiring the third-ever BitLicense in January 2017, 16 months after the final rules around virtual currencies were adopted. However, 2018 has seen a rise in the number of licenses granted, with nine this year, the seventh of which was awarded to ATM operator Coinsource only two weeks ago. NYDIG’s license comes eight months after a proposed alternative to BitLicense regulations was put forth in the New York State Assembly. As of this writing, that proposed legislation is still in committee.

Author:

Source link

Related posts

24 Thoughts to “New York Department of Financial Services Issues 14th BitLicense”

  1. Rashida Craft

    Thanks a lot for the blog post. Really looking forward to reading more.

  2. gamefly free trial

    hey there and thank you for your information – I’ve definitely picked up something new from right here.
    I did however expertise a few technical points using this site, since I experienced to
    reload the web site many times previous to I could
    get it to load correctly. I had been wondering if your web hosting is
    OK? Not that I am complaining, but sluggish loading instances
    times will very frequently affect your placement in google and
    could damage your high-quality score if ads and marketing with Adwords.
    Anyway I’m adding this RSS to my e-mail and
    can look out for much more of your respective fascinating content.

    Make sure you update this again soon.

  3. gamefly free trial

    What’s up, I want to subscribe for this web site to get hottest updates, so
    where can i do it please assist.

  4. quest bars

    Hello, I enjoy reading through your article post.
    I like to write a little comment to support you.

  5. plenty of fish dating site

    Wow, this paragraph is good, my sister is analyzing
    these things, therefore I am going to let know her.

  6. natalielise

    Hey there this is kinda of off topic but I was wanting to know
    if blogs use WYSIWYG editors or if you have to manually code
    with HTML. I’m starting a blog soon but have no coding skills so
    I wanted to get advice from someone with experience.
    Any help would be enormously appreciated! natalielise pof

  7. plenty of fish dating site

    Hello! I know this is somewhat off-topic however I needed to
    ask. Does running a well-established website such as
    yours take a lot of work? I’m brand new to blogging but I do write in my journal
    on a daily basis. I’d like to start a blog so I
    will be able to share my experience and feelings online.

    Please let me know if you have any ideas or tips for new aspiring blog owners.

    Appreciate it!

  8. plenty of fish dating site

    I savour, result in I discovered exactly what I was having a look for.

    You have ended my four day long hunt! God Bless you man. Have a nice day.
    Bye

  9. quest bars cheap

    Simply wish to say your article is as amazing. The clearness in your
    post is simply great and i could suppose you
    are knowledgeable on this subject. Fine along with your permission allow me to grab your
    feed to stay up to date with forthcoming post. Thank you a million and please continue the enjoyable work.

  10. minecraft games

    It’s very simple to find out any topic on net as compared to textbooks, as I found this paragraph
    at this web page.

  11. minecraft games

    I couldn’t refrain from commenting. Exceptionally
    well written!

  12. quest bars cheap

    Great article.

  13. minecraft games

    hello there and thank you for your info – I have certainly picked up anything new from right here.
    I did however expertise some technical points using
    this web site, as I experienced to reload the web site a lot of times previous
    to I could get it to load correctly. I had been wondering if your
    hosting is OK? Not that I’m complaining, but slow loading instances times will very frequently affect
    your placement in google and can damage your high quality score if
    advertising and marketing with Adwords. Well I’m adding this RSS
    to my e-mail and could look out for a lot more of
    your respective exciting content. Ensure that you update this again soon.

  14. sekabet giris

    … [Trackback]

    […] Here you will find 12810 more Information on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  15. przedszkolebiczyce

    … [Trackback]

    […] Information to that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  16. ip stresser

    … [Trackback]

    […] Read More to that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  17. DevOps strategy consulting

    … [Trackback]

    […] Read More Info here to that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  18. beretta m9

    … [Trackback]

    […] Info on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  19. shemale cam

    … [Trackback]

    […] Find More Information here on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  20. https://krajowy.biz/

    … [Trackback]

    […] Read More Info here to that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  21. sbobet

    … [Trackback]

    […] Find More Info here to that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  22. sbo

    … [Trackback]

    […] Find More on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  23. click here

    … [Trackback]

    […] Read More Info here on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

  24. look at here

    … [Trackback]

    […] Information on that Topic: tradingbtc.com/2018/11/15/new-york-department-of-financial-services-issues-14th-bitlicense/ […]

Leave a Comment