After Three Years, Bitstamp Acquires the Bitlicense to Operate in the State of New York
By Mark Lemon – Cryptocurrency Professional
Bitstamp, one of the only fully regulated cryptocurrency exchanges in the European Union, has finally received approval from the New York Department of Financial Services (NYDFS) to operate an exchange in the state of New York to buy and sell Bitcoin. This approval comes three years after the exchange applied for the licence and marks Bitstamp as the 19th company to receive it.
Current CEO Nejc Kodric strongly felt that acquiring this licence would be key for the success of the exchange whilst other firms like Kraken, Bitfinex and ShapeShift have avoided the state. The exchange has always operated in the US but ceased operations in Washington State over regulatory concerns. The new licence means Bitstamp can provide services to sell and buy BTC in this state, argued to be one of the hardest to obtain.
Bitstamp was recently acquired by Belgium-based investment firm NXHM back in October 2018 as part of it expanded into the US. The company has embraced regulatory efforts with a focus on transparency and accountability, particularly with institutional investors. Adhering to the rules of the licence, Bitstamp meets several requirements regarding the protection of the consumer. Many investors will only buy cryptocurrency sourced from a fully regulated and licenced exchange they can trust.
Obtaining one of the most prestigious licences for operating a cryptocurrency exchange at this moment, Bitstamp is accountable to the high standards followed by traditional financial institutions. This licence is still restrictive in the way that it does not authorise a company to trade all cryptocurrencies but those that have received approval. At this time, this will permit Bitstamp to sell and buy XRP, Bitcoin, Bitcoin Cash, Litecoin and Ethereum.
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