New York State DFS recently granted BitLicense to the NYDIG branch, NYDIG Execution, and granted its second branch, NYDIG Trust Company, a limited trust status. The company becomes the fourteenth company to receive DFS BitLicense.
NYDIG obtains the custody and commerce of BitLicense
According to an official publication of the Department of Financial Services of the State of New York (DFS) Wednesday (November 14, 2018), Maria T. Vullo, Superintendent for Financial Services, announced that DFS has approved the application of NYDIG Execution LLC for a digital currency license. The DFS also allowed NYDIG Trust Company LLC to operate as a limited trust company.
NYDIG Execution LLC and NYDIG Trust Company LLC are both subsidiaries of the New York Digital Investment Group (NYDIG) LLC.
With the new Bitlicense, NYDIG can offer consumers different custody options. These options include self-custody, bargaining with NYDIG Execution or its subsidiary, NYDIG Trust, for custody services. For custody services, consumers can also negotiate with a third party.
Vullo also said that strict regulatory measures would allow accountability and responsibility in the virtual currency sector. The superintendent, however, stressed that consumer protection is a priority.
Commenting on the approval of BitLicense, Maria T. Vullo said:
Today's approval further demonstrates that operating the robust New York state regulatory system leads to a stronger fintech market and promotes innovation and the necessary compliance with effective risk-based controls.
In addition, the New York DFS also allowed NYDIG to offer cryptocurrency custody services for digital currencies. These include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and Bitcoin Cash (BCH).
The commentary on the new BitLicense was also CEO of NYDIG, Robert Gutmann. According to the CEO, NYDIG is committed to providing transparency, security, custody and asset management services.
Since its creation in 2011, the DFS of the State of New York has granted fourteen BitLicences to digital money companies. NYDIG is the fourteenth recipient of DFS BitLicense.
Cryptography Growth in New York with DFS BitLicense
The DFS of the State of New York supports the growth and development of the cryptocurrency market in New York. With BitLicense, the regulatory body ensures that virtual money companies offer legitimate services and provide adequate consumer protection.
Coinbase Custody Trust Company LLC, a subsidiary of Coinbase, received a license from DFS to manage a limited-purpose trading company. The license authorized the subsidiary to offer custody services for six cryptocurrencies, including XRP and Litecoin and Ethereum Classic.
In early November, Coinsourse became the first Bitcoin ATM company to receive BitLicense from New York State DFS. The company remains the only one of its kind to receive BitLicense.
In June, Payment company, Square, became the seventh company to receive BitLicense from the New York regulatory agency. The license authorized the company to offer cryptocurrency services in the state of New York.
Image courtesy of the DFS of New York.