The New York State Department of Financial Services has granted a digital currency license to Bitstamp USA, which would authorise the firm to offer crypto trading services in the state of New York.
The license, referred to as the BitLicense, will allow Bitstamp USA to offer trading services to numerous cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Bitstamp is also allowed to facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in US dollar, other cryptos and a select number of fiat currencies like Sterling, the euro, Swiss franc, yen and the Australian dollar.
Bitstamp has said that the news is a big step in the right direction to see the firm’s effort to expand its presence in the US and showcase its commitment to being compliant with international regulations.
The CEO of Bitstamp, Nejc Kodrič has 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. 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.”
He then 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 numerous 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.”
The BitLicense came into effect in August 2015 when the New York State DFS approved applications of 19 companies including itBit, Circle Gemini, Ripple, Coinbase, Xapo, Paxos Trust Company and many more.
Bitstamp is one of the original cryptocurrency exchange platforms and was founded in 2011. The firm claims to be the EU’s biggest by trading volume and serves more than three million traders across the globe.