Bitstamp now can officially offer cryptocurrency trading services in the state of New York after the state’s Department of Financial Services granted the exchange a BitLicense.
Obtaining a BitLicense is undoubtedly good news for the traditionally European-focused Bitstamp, which will now find it easier to make inroads into the United States cryptocurrency trading ecosystem and expand its presence in the large North American market. Stated the Luxembourg-based exchange in an official announcement:
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.
Acquiring a BitLicense is no easy feat in the restrictive state of New York. In order to obtain the somewhat-coveted permission slip, companies must adhere to a slew of strict requirements relating to consumer protection.
Many individuals in the cryptocurrency space are critical of the BitLicense — and for good reason. However, Bitstamp claims that the license essentially validates its operation as operating under the “same high standards followed by traditional financial institutions.” Notes the company:
Since we opened our doors in 2011, we’ve strived to not only be the most secure and trusted crypto exchange in the world, but to shape new frontiers for the industry by developing best practices in security and self-regulation. We look forward to carrying the lessons we’ve learned in Europe over the ocean and helping to develop a better environment for all crypto businesses, both in the US and worldwide.
Bitstamp was rumored to be close to finalizing a deal for the sale of the company to a South Korean gaming company nearly one year ago — but little information regarding the rumors followed.
What do you think of Bitstamp and New York’s infamous BitLicense? Let us know your thoughts in the comments below!
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