On November 14, 2018, New York State Department of Financial Services (DFS) has approved the application of New York Digital Investment Group (NYDIG) Execution LLC, a subsidiary of NYDIG LLC, for a virtual currency license and a money transmission license. Superintendent Maria T. Vullo expressed,
“As the financial services marketplace continues to expand and evolve in New York, the implementation of strong regulatory safeguards that encourage the responsible growth of the industry, while first and foremost protecting consumers remains critical,”
“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.”
Bitcoin, Bitcoin Cash, Ether, XRP and Litecoin
DFS has authorized NYDIG to offer secure custody and trade execution services providing consumers with several options for the custody of the digital assets: engaging in self-custody, contracting with a third party for custodial services, or contracting with NYDIG Execution or NYDIG Trust for custody services. DFS authorized NYDIG to offer defined services to operate as a custodian for virtual currencies, including Bitcoin[crypto coins=”BTC” type=”text” show=”percent”], Bitcoin Cash[crypto coins=”BCH” type=”text” show=”percent”], Ether[crypto coins=”ETH” type=”text” show=”percent”], XRP[crypto coins=”XRP” type=”text” show=”percent”] and Litecoin[crypto coins=”LTC” type=”text” show=”percent”].
Fourteen charters or licenses approved to date
According to the release New York State Department of Financial Services continues to rapidly and responsibly respond to 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. To date, DFS has approved fourteen charters or licenses for companies in the virtual currency marketplace.
“NYDIG is pleased to receive these regulatory approvals and we look forward to providing secure and transparent liquidity, custodial and asset management services to the institutional market. We want to express our gratitude to the NYDFS for providing a clear and comprehensive regulatory framework for investors, providers and users alike to engage with the burgeoning digital asset ecosystem,”
said Robert Gutmann, CEO of New York Digital Investment Group.
New York seems to be operating in a favor of digital currencies lately as New York regulators rubber stamped Bitcoin ATM’s as well. It means that New Yorkers be able to use their mobile phones to purchase bitcoin or trade it for cash.