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Bitstamp, one of the most popular exchanges in the market, has received the BitLicense to operate in the State of New York. The license has been granted by the NY State Department of Financial Services (DFS). The information was released by the agency in a recent press release.
Bitstamp Receives BitLicense From Regulators in NY
This new license will be allowing Bitstamp USA to offer trading services in New York. Users will be able to purchase and trade different digital assets, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). The company is also offering transfers of funds through the Ripple Network. Individuals can also have balances in different fiat currencies, including the Australian dollar (AUSD), the British pound (GBP), the euro (EUR) and many others.
The firm said that this license will help them expand its presence in the United States and be compliant with international regulations.
Nejc Kodrič, the CEO of Bitstamp, commented about it:
“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. […] 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.”
According to him, obtaining a BitLicense shows their commitment to the cryptocurrency world. It is very important for a company to obtain a BitLicense since the procedure to receive it is not easy at all. The firm had to submit documents that included financial statements, the company’s most recent anti-money laundering (AML), bank secrecy act (BSA) policy, a risk assessment, and many other things.
The New York State DFS has approved only applications of 19 companies since the BitLicense started working in August 2015. Other approved companies are Circle, Paxos Trust Company, Gemini, Ripple, Coinbase, Xapo, and Coinsource, among others.
Bitstamp is one of the oldest cryptocurrency exchanges in the market. In the last 24 hours, the digital currency exchange handled over $72 million in trading volume, according to data provided by CoinMarketCap. The most popular trading pairs were BTC/USD, ETH/USD and XRP/USD.
There are several experts that have complained about the regulations imposed by the regulatory agency in the New York State. Some claim that smaller companies would never be able to be approved due to the requirements requested.