The New York Digital Investment Group (NYDIG) is the fourteenth and latest financial firm to receive a coveted BitLicense. In a statement published on November 14, 2018, the NYDIG has been issued a BitLicense by the the New York Department of Financial Services (DFS).
The Virtual Currency And Money Transmitter License, BitLicense, will allows entities to legally operate cryptocurrency-related business, conduct money, offer crypto custodial and trade execution services in the jurisdiction of New York state.
In the case of NYDIG’s subsidiary, NYDIG Execution, the DFS has given the authorization for the firm to provide custody holdings and trade execution services. NYDIG can now offer services for the five digital assets such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC).
DFS Superintendent Maria T. Vullo commented:
“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,”
This is the 14th virtual currency license New York has granted to a cryptocurrency startup almost three years since blockchain startup Circle acquired the first Bitlicense in Sep. 2015.
New York has required crypto-based business obtain the License in order to exchange digital tokens for fiat and hold customer funds, with blockchain startup Circle being the first get a Bitlicense in September 2015. Among the fourteen companies that have acquired the license, Ripple, BitFlyer, Coinbase, itBit and the Winklevoss twins’ Gemini are among them. While many crypto companies are vying to obtain the BitLicense, there are detractors that feel as if the license is the antithesis of the purpose of cryptocurrency. There have even been firms boycotting servicing New York residents, such as Kraken and ShapeShift.