Acting Financial Services Superintendent Linda A. Lacewell announced that the New York State Department of Financial Services (DFS) has approved the application of Bitstamp USA Inc., a subsidiary of Bitstamp Ltd., for a virtual currency license. “We are pleased to welcome Bitstamp to New York’s growing virtual currency marketplace,” said Acting Superintendent Lacewell. “A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy.”
DFS has authorized Bitstamp USA to offer services providing its customers with the ability to buy and sell bitcoin, along with select other virtual currencies, for USD and vice versa. Bitstamp USA is also authorized to facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in USD, other virtual currencies, and select fiat currencies, including the Australian Dollar, British Pound, Euro, Swiss Franc, and Japanese Yen.
“We appreciate New York’s solid regulatory framework – the nation’s first – to protect consumers using cryptocurrencies and look forward to expanding our growing business in the state,” said Nejc Kodrič, CEO of Bitstamp. “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.”
Since taking the lead nationally in regulating the virtual currency market in 2015, DFS has approved the applications of 19 companies. DFS remains committed to supervising and promoting financial services market innovations by licensing technology-based money transmitters under New York’s money transmitter law; online lenders under New York’s banking law; and virtual currency exchanges under New York’s financial services law.