New York State Grants BitLicense to Crypto Exchange Bitstamp

Bitstamp USA Inc., a subsidiary of Bitstamp Ltd., was granted a virtual currency license from the New York State Department of Financial Services (DFS). Acting Financial Services Superintendent Linda A. Lacewell announced the DFS 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.

Linda A. Lacewell, Acting Superintendent at New Yorks State Department of Financial Services, commented: “We are pleased to welcome Bitstamp to New York’s growing virtual currency marketplace. A regulated industry protects customers while supporting innovation and ensuring our financial services sector is a vibrant part of New York’s economy.”

The license also allows Bitstamp USA 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.

Nejc Kodrič, Chief Executive Officer at Bitstamp
Nejc Kodrič

Nejc Kodrič, Chief Executive Officer at Bitstamp, said: “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. 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.”

Bitstamp has become the 19th company to be granted a BitLicense by the New York State DFS ever since the regulator opened the door to the virtual currency market in 2015. The financial watchdog provides licenses to 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.

In January 2019, Robinhood Crypto LLC, a subsidiary of Robinhood Markets Inc., and Moon Inc., doing business as LibertyX, were approved for virtual currency licenses. BitPay received one in 2018.

In September 2015, Boston-based Circle was granted the first BitLicense, Ripple followed in July 2016. In 2017, Coinbase, bitFlyer, and Genesis Global Trading were granted a license. Xapo, Square, and BitPay also hold the authorization from DFS.