According to the reports, the New York Department of Financial Services (NYDFS) has issued a license, known as BitLicense, to operate digital currencies to an oldest European cryptocurrency exchange – Bitstamp.
It is important to note that BitLicense applied for the license back in June 2015, just after the state authorities adopted the corresponding legislation.
The company wrote in a dedicated blog post –
“The New York State Department of Financial Service has granted us a BitLicense. This allows Bitstamp to continue providing cryptocurrency trading services in the US and paves the way for us to expand our presence in the States.”
The license is meant to allow firms to operate on the territory of the United States and extend its presence in the nation in line along with its global expansion strategy. However, the license is conditioned on strict requirements whenever it comes to customer protection as well as general business practices.
“The BitLicense requires us to meet several stringent requirements when it comes to consumer protection, which is a challenge we fully embrace. It is further proof that trading at Bitstamp is subject to the same high standards followed by traditional financial institutions.”
Now, Bitstamp can offer trading services aiming to allow the customers to buy/sell Bitcoin along with a few other digital currencies for USD. Besides that, BitLicense entitles the firm to facilitate fund transfers by using the Ripple Network and reflect balances in digital currencies, and various fiat currencies, which include USD, Japanese Yen and Euro.
Acting Superintendent Lacewell commented –
“We are pleased to welcome Bitstamp to New York’s growing digital 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.”