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