NY State Financial Regulator Grants Virtual Currency License To Bitstamp

The New York State Department of Financial Services (DFS) has granted a virtual currency license to Bitstamp USA Inc., a subsidiary of Bitstamp Ltd., authorizing the company to offer crypto trading services in the state of New York.

The virtual currency license, also referred to as the BitLicense, allows Bitstamp USA to offer trading services in several cryptocurrencies including bitcoin, ether, litecoin and bitcoin cash, as well as the US dollar. Bitstamp USA is also authorized to facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in US dollar, other cryptocurrencies, and select fiat currencies, including the Australian dollar, British pound, the euro, the Swiss franc, and the Japanese yen.

Bitstamp said the news was an important step in the company’s effort to expand its presence in the US and showcase its commitment to being compliant with international regulations.

In 2016, Bitstamp Europe S.A., the group’s Luxembourg subsidiary, was granted a license to be fully regulated in the European Union (EU) as a payment institution, allowing it to do business in all 28 EU member states.

“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,” said Nejc Kodrič, CEO of Bitstamp.

“We’ve always embraced proactive efforts that protect the interests of both consumers and institutional investors. Obtaining a BitLicense is another example of our commitment to be the most trusted digital currency exchange in the world.”

Kodrič added:

“Having a BitLicense is also a key element in ramping up our presence in the United States, especially when it comes to working with institutional investors.”

The New York State DFS BitLicense required Bitstamp to meet several stringent requirements and submit documents including audited financial statements, the company’s most recent anti-money laundering (AML)/bank secrecy act (BSA) policy, a risk assessment, a business plan, the company’s staffing and internal policies including those addressing market manipulation, consumer protection and cybersecurity, and submitting a description of each type of transaction or service to be conducted.

Since the BitLicense came into effect in August 2015, the New York State DFS has approved applications of 19 companies including Circle, itBit, now Paxos Trust Company, Gemini, Ripple, Coinbase, bitFlyer, Xapo, Coinsource, and Robinhood Crypto LLC, a subsidiary of Robinhood Markets Inc., the operator of the popular commission free stock trading app Robinhood.

Founded in 2011, Bitstamp is one of the oldest cryptocurrency exchange platforms. The company claims to be the EU’s largest by trading volume, serving more than three million traders around the world.

Bitstamp was acquired in late 2018 by NXMH, a Belgium-based investment company. Both Bitstamp and NXMH declined to disclose the terms of the deal but rumors suggest it was around US$400 million.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin28,828 0.05 % 2.66 % 5.11 %
Ethereum1,743.8 0.47 % 5.09 % 13.84 %
Tether1.003 0.23 % 0.17 % 0.22 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB302.85 0.21 % 3.23 % 1.55 %
XRP0.3871 0.55 % 3.06 % 8.19 %
Binance USD1.003 0.10 % 0.13 % 0.09 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana41.65 1.03 % 6.39 % 20.42 %
Dogecoin0.08190 0.44 % 2.95 % 5.95 %

bitcoin
Bitcoin (BTC) $ 28,852.00
ethereum
Ethereum (ETH) $ 1,753.00
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 303.29
xrp
XRP (XRP) $ 0.38605
binance-usd
Binance USD (BUSD) $ 1.00
cardano
Cardano (ADA) $ 0.462963
solana
Solana (SOL) $ 42.09
dogecoin
Dogecoin (DOGE) $ 0.081931