Bitstamp Receives BitLicense from New York Financial Regulator

News and Analysis

Bitstamp, Europe’s oldest and biggest Bitcoin exchange, has been granted a virtual currency license by the New York Department of Financial Services (NYDFS). Bitstamp first applied for the license, also known as BitLicense, in June 2015, when NYDFS created the state’s landmark law.

“The New York State Department of Financial Services has granted us a BitLicense. This allows Bitstamp to continue providing crypto trading services in the US and paves the way for us to expand our presence in the States,” Nejc Kodrič, Bitstamp’s CEO, said in a statement..

Bitstamp is the 19th company to receive a BitLicense from the department, which authorizes the company to conduct digital currency operations in the state of New York. This will include offering Bitcoin, Litecoin, Bitcoin Cash, Ether and XRP trading pairs to the state’s residents.

“With today’s approval of Bitstamp’s virtual currency license, New York is showing that regulation and innovation can exist together,” Acting Financial Services Superintendent Linda A. Lacewell said in a statement.

Bitstamp has also been authorized to facilitate transfers of funds onto the Ripple Network, issuing Ripple Balances in U.S. dollars, other virtual currencies, and select fiat currencies, including the Australian dollar, British pound, euro, Swiss franc, and Japanese yen, the financial regulator said.

The BitLicense has been criticized in the past for being too expensive and too logistically heavy for younger companies to attain, although on paper, its goals seem logical enough: to protect customers, to establish regulations that prevent money laundering, and to establish cybersecurity standards.

“Bitstamp has always embraced regulatory efforts which focus on transparency and accountability that can help expand the industry. Obtaining a BitLicense is a key element in ramping up our presence in the United States, especially when it comes to working with institutional investors,” added Nejc Kodrič.

In 2016, Bitstamp Europe SA was granted a payment institution license in Luxembourg, which gave access across all 28 European Union countries.

In October last year, Bitstamp was acquired by NXMH, a Belgium-based investment company, in an all cash deal.

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